Insurance can be confusing, and like many things we don’t understand, a mythology evolves around insurance topics.

Many of the myths about auto insurance are just that: myths. They aren’t true. In other cases, a car insurance myth might only be true sometimes. Let’s examine a few of these myths.

“Red cars cost more to insure…”

The myth about red cars just won’t go away. Many people think that red cars cost more to insure. However, your insurer doesn’t care what color your car is. Instead, your insurer is looking at safety features, theft rates, and how much it costs to repair your car. Accident frequency for certain types of cars plays a role as well. They’re also looking at your own risk factors, like your driving experience and accident history. They aren’t considering the color of your car, however. Go ahead, buy the red one if you want.

“More expensive cars cost more to insure…”

This one is only sometimes true. Yes, part of your insurance premium is based on the value of the car. After all, an $80,000 car costs more to replace in a total loss than an $8,000 car. However, most accidents aren’t a total loss, so the cost of repair comes into play. This is where you may find that a less expensive car can cost just as much or even more to repair after an accident. Another consideration is that a more expensive car may also have more safety features that reduce the risk of an accident. These safety features are probably reducing your insurance costs even if you don’t see the discounts detailed on your insurance bill.

“Insurance covers anything that happens to my car…”

Your insurance policy can protect you against many types of losses, but not everything is covered. Two coverages on your policy can help protect you against most types of damage, however.

• Collision coverage pays to repair your vehicle if damaged in a collision with another vehicle or stationary object, or due to a rollover.

• Comprehensive coverage protects against several other types of risks such as theft, fire, flooding, vandalism, and falling objects.

There are some exceptions, though. For example, intentional acts aren’t covered, nor is racing. You’ll also find that business-related coverage may not be available without adding an endorsement to your policy, which can be a concern for ride-share drivers or delivery people. Damage due to illegal acts is also commonly excluded.

Not everything you hear about insurance is always 100% accurate and sometimes it’s only true in certain situations. If you have questions about your auto coverage, just reach out to your agent or broker to schedule a policy review. Not only will all your questions be answered, you just might find you have better coverage afterwards. Life changes quickly. Make sure your insurance policy is up to date to keep pace with those changes.

Have any questions? We can help.

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