Everybody has a friend or two (or ten) who always has an answer for everything. Whether that answer is actually true is always a mystery. We thought it'd be fun to put together 10 lies about car insurance that we've all heard at one time or another. Which of these lies have you heard recently? Do you remember who told it to you?
Red Cars Cost More to Insure
That's a lie - Insurance rates may be affected by the vehicle's year, make, model, body type, engine size, credit history and driving record, but not the color.
Let me borrow your car. If I get in an accident I'll just use my insurance.
That's a Lie - If you own the car your insurance will be the first one to pay any claims. And guess what, even though you weren't present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.
As long as you have full coverage, your insurance company has to pay for your rental car.
That's a lie - Full coverage is an arbitrary term that insurance professionals don't really even like to use because there's no such thing as full coverage. In most cases, if you get in an accident and don't have rental insurance as part of your policy you won't have coverage for a rental car.
I have insurance, so if someone steals my car the insurance company will pay me for it.
That's a lie - Sort of. You need to have comprehensive coverage on your insurance policy in order to get paid for the value of a stolen vehicle. If you have liability only you're going to be out of luck.
If you want the best rates you need XYZ Insurance Company.
That's a lie - Every insurance company uses different criteria to determine their rates and no company has the best rates for everyone. You need to work with an independent agent who can get you multiple quotes if you want the best price.
Buy the state minimum insurance - it'll save you money.
That's a lie - While buying the state minimum may save you a few dollars today, the potential risk of having a very large insurance claim that you have to pay for out of pocket for the next 20 years won't be saving you any money. In most cases, it's worth spending a few extra dollars to get ample protection.
There's a lot of false information out there about car insurance. If you want the whole truth and nothing but the truth about auto insurance contact our agency at (386) 218-4951 or click here to get a quote.