COMMON MISCONCEPTIONS AND MISNOMERS

Red Cars Cost More to Insure: The color of your car doesn't affect your insurance rates. Insurance companies base premiums on factors like the make, model, age, and your driving history.

Cheaper Cars Always Have Lower Insurance Rates: While it's generally true that less expensive cars may have lower premiums, other factors like safety features, repair costs, and the likelihood of theft also play a significant role in determining rates.

Full Coverage Means Everything is Covered: "Full coverage" typically refers to a combination of comprehensive and collision coverage. It does not necessarily cover every possible scenario, like medical expenses or all types of damage.

Minimum Coverage is Enough: State minimum coverage might not provide adequate protection. It's essential to consider your personal circumstances and potentially opt for more coverage to safeguard your assets and financial security.

The Insurance Follows the Driver, Not the Car: In most cases, auto insurance follows the car, not the driver. If someone else drives your car and gets into an accident, your insurance typically covers the damages.

Personal Auto Insurance Covers Business Use: Personal auto insurance typically doesn't cover business use of your vehicle. If you use your car for work purposes, you may need commercial auto insurance.

Myth of the Loyal Customer Discount: Sticking with the same insurance company for a long time doesn't always guarantee the best rates. Insurers often offer enticing deals to attract new customers, so it's essential to shop around periodically.

Auto Insurance Covers Stolen Personal Items: Auto insurance covers the theft of your car, but personal belongings inside are usually not covered. You'd need a renters or homeowners policy for that.

My Driving Record is Erased After a Few Years: While some violations may no longer affect your rates after a few years, they usually remain on your driving record for a longer time and can be taken into account by insurance companies.

Getting a Speeding Ticket Automatically Raises Your Rates: While speeding tickets can lead to increased premiums, the extent of the increase often depends on the severity of the violation and your driving history. Some insurers offer forgiveness programs for minor infractions.

Auto Insurance Covers Wear and Tear: Auto insurance is for sudden and accidental events, like accidents or theft. It does not cover regular wear and tear, maintenance, or repairs due to normal aging of your vehicle.

Credit Score Doesn't Affect Rates: Many insurance companies use your credit score as a factor in determining your rates. A good credit score can often result in lower premiums.

Understanding these common misnomers can help you make informed decisions about your auto insurance and ensure you have the coverage you need without overpaying for things that don't affect your rates.