5 Auto Insurance Myths Debunked

Auto insurance in most states is not an option – it is mandatory. But despite this, not many people understand what the insurance actually does or how it works. The fact that auto insurance is required may actually be a cause of the lack of understanding surrounding it; since people don’t have the option of going without, they just check all the boxes and don’t think twice about it. But, Corkhill Insurance Agency is here to shed some light on popular misconceptions about auto insurance to help you discover how it actually works.

Myth 1: A friend borrowing your car is not covered by your car insurance policy.

Auto insurance covers the vehicle, no matter who is driving it. So, if you are on a road trip and switching drivers, that doesn’t mean you have to be extra-nervous when someone else takes the wheel. A collision is covered by the policy in operation for the car.

Myth 2: When you turn 25, your rates will drop.

There is no set age where you will see your rates go down. Different companies have different algorithms to determine the premium, so universal age ranges do not apply. You may see more savings when you turn 21 or 30; it all depends on what company you are insured by.

Myth 3: If you have comprehensive coverage, your auto insurance will cover the stuff inside your car.

Comprehensive coverage is always a good idea to have, since base collision coverages won’t protect you from fires, thefts, water damage, and other natural disasters. But, it won’t help you if you leave a backpack in your car and someone breaks in and steals it. Personal possessions and property are protected under homeowners or renters insurance, so don’t misunderstand what the “comprehensive” in comprehensive coverage actually means.

Myth 4: Red cars have higher premiums.

Red cars really get a bad reputation, with higher insurance premiums and more speeding tickets attributed to them. Perhaps the thought process is that if red cars are pulled over more, then they are likely to have more traffic violations, and their insurance costs will go up. But, insurance companies don’t rely on this urban legend as a factor in determining your premium. So, if you love red cars, don’t worry – that won’t cause your rates to skyrocket.

Myth 5: With state-of-the-art safety features, a new car should cost less to insure.

Safety features surely do factor into your insurance premiums, since you will be less likely to file claims with the assistance of safety technology. But, your new car might also have a much larger engine than your old one. All other factors being equal, a Toyota Prius will cost much less to insure than a new Porsche 911, even if the Porsche has excellent safety features.

Speak with an Insurance Agent Today

There are many variables which go into determining the cost of insuring a particular vehicle, and some companies will weigh certain variables as more important than others. One way to figure out what coverage and deductibles are right for you is to meet with a reliable insurance agent at Corkhill. We take pride in protecting the lives and possessions of many Orlando residents, and will always strive to give you the right coverage to keep you and your loved ones safe. For a free quote, call us today at 407-898-8891.