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February 7, 2012

Top 5 Auto Insurance Myths

Top 5 Auto Insurance Myths
Knowing the truth about auto insurance can save you time, money and hassle.

If you’ve ever avoided buying red vehicle for fear your insurance rates will spike, this list is for you. Debunking auto insurance myths can help you become more aware of what should and shouldn’t concern you about your insurance coverage. Here are the top five to get you started.

  1. Red cars cost more to insure.
    Actually, insurance companies don’t even ask for car color when they calculate your premium. They look at these and other factors instead:

    • Year, make, model, body type, engine size and age of your car.
    • The driving records of the drivers on your policy.
    • Where the car is garaged.
  2. A single speeding ticket will make insurance rates skyrocket.
    That’s not true in most instances. Some states don’t allow insurance companies to raise premiums based on a single, minor moving violation. These factors also affect your rates:

    • The number of points your state’s Department of Motor Vehicles assigns to the ticket.
    • Whether you’ve had prior tickets.
    • How long you’ve been with your auto insurance company. 
  3. As a Natiowide customer, you can also protect your rates from increasing by adding Minor Violation Forgiveness to your policy. With this additional protection, you can be assured that Nationwide won’t increase your rate if you have a minor violation.

  4. Moving doesn’t affect your coverage.
    When you move, especially to a different state, your auto insurance company will need to update your policy and confirm that it offers coverage where you live.
  5. Auto insurance always covers damage from vandalism, theft and random acts of nature.
    This depends on your policy choices. Collision insurance typically covers damage to your car from a collision with another vehicle. You need to add comprehensive coverage for protection from covered hail, theft, vandalism, deer and other random acts of nature.
  6. Every auto insurance company’s rates are about the same.
    Actually, annual premiums can vary significantly between companies. Each insurer sets rates based on its own experience. Different companies may also offer different coverage. It’s a good idea to review your policy with your agent once a year to ensure you’re getting the best rates possible for the coverage you need.

Go to our Auto Quote Form (short) to get a quote now!

Tags: Auto, insurance, Myths, Quote, Rates, Red Cars, Theft

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