If you have a car, buying auto insurance is important. However, there are several myths about auto insurance that may be misleading. To help you understand the truth, here are a few common myths about auto insurance – clarified.
A Speeding Ticket May Lead to Higher Insurance Costs
It is a misconception that your auto insurance cost will increase after you get a single speeding ticket. Most states don’t allow insurance companies to raise the premiums after a minor violation. You will need to avoid significant offenses like reckless driving, driving in a carpool lane without reason, or receiving a DUI.
Moving to Cities Will Not Impact Coverage
Most people move to a different city, thinking their insurance will not be affected. However, your coverage can be impacted, especially when you are moving to a different state. It is good to contact your insurer to confirm if your coverage will remain the same in your new city.
Red Cars Cost More to Insure
This is one of the top auto insurance myths that may prevent you from buying the red color car. The color of your vehicle does not impact your insurance premium. So go ahead and buy the car that you have been eyeing for a while. Insurance companies will usually check the year, make, and model of your vehicle before calculating premium rates, so you can choose the car color as you wish.
Your Insurance Will Pay Off Your Loan If the Car Is Totaled in an Accident
Your insurer won’t pay off your loan when your car is declared a total loss. They will issue payment for the actual cash value of your vehicle minus your deductible on your comprehensive or collision coverage. If your loan amount is more than what your insurance company has paid, you will need to pay the remaining.
Make sure to secure your car with the auto insurance that offers coverage as per your requirements. If you have additional questions about vehicle insurance, contact the experts at Udell Family Insurance today. We are ready to assist you with all your coverage needs.