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Although required in nearly every state, auto insurance policies can sometimes be tricky to fully understand. And because policies often come with a great deal of fine print and technical terms, it’s no wonder that most people learn the basics of auto insurance from others. Unfortunately, this can lead to a lot of misinformation being passed down. To help avoid confusion, we’re clearing up eight of the most common auto insurance myths.

Insurance Myth #1: Your Driving Record Is the Only Factor Insurance Companies Consider 

Your driving record does play a significant role when determining your auto insurance premium. However, it isn’t the only factor that is considered. Other factors insurance providers take into account include:

• Age or driving experience (may vary depending on your state)
• Your zip code data
• Vehicle make and model

It’s important to remember that insurance providers may use different formulas to calculate your premium, so shopping around could help you save.

Insurance Myth #2: Your Car’s Color Can Influence Your Insurance Rate 

One of the most common auto insurance myths we come across is that red cars are more expensive to insure. The idea is that because red vehicles stand out, they are more likely to be stolen or vandalized.

Thankfully for all red car owners, this claim is a complete myth. In fact, it’s likely that your insurance provider doesn’t even know what color your auto is. Typically, the only identifying information your insurer will need about your vehicle will be its make and model.

Insurance Myth #3: Smaller Cars Are Cheaper to Insure 

This may come as a surprise, but smaller vehicles aren’t necessarily cheaper to insure. Because compact cars tend to take on more damage in car accidents, they’re more likely to be declared a total loss versus a larger car. Additionally, smaller cars may not come equipped with advanced safety features that could result in a rate discount.

Insurance Myth #4: If You Owe Money on Your Car Loan, Your Insurer Will Pay for It

Some people may incorrectly assume that their insurance carrier will pay for any amount still owed on their car loan if their vehicle is totaled. Unfortunately, this is only true if you purchase gap insurance, an additional coverage that must be added to your policy. Without gap insurance, your insurance provider will only pay you what the vehicle is worth up to your policy limits.

Insurance Myth #5: An Older Car is Less Likely to be Stolen 

On the surface, it may seem logical that car thieves would only try to steal newer, more valuable cars. However, older vehicles tend to be the favored targets for theft because their security features are usually weaker than newer cars. In addition, as car manufacturing changes, there is a growing market for older car parts that are becoming harder to obtain. To protect your vehicle from theft or vandalism, you’ll need to have comprehensive coverage.

Insurance Myth #6: You Only Need Minimum Coverage 

Although you’re required to meet your state’s minimum coverage levels to legally drive, you may need more coverage depending on the situation. For example, suppose you’re financing a vehicle. In that case, your lender may require you to purchase collision and comprehensive insurance to protect their assets. Additionally, if you have assets to protect, purchasing higher liability limits could offer you greater financial protection for a small change in price.

Insurance Myth #7: If My Car Is Stolen, the Contents Inside Are Covered

As mentioned, comprehensive insurance will help cover the cost of theft or vandalism to a vehicle. Unfortunately, it will not cover any personal items left in your car if stolen, such as a laptop or phone. However, personal items taken may be covered under your homeowners or renters insurance policy.

Insurance Myth #8: Drivers of Fast Sport Cars Pay More for Auto Insurance 

As we previously mentioned, auto insurance providers consider multiple factors when determining your auto insurance rate, so while your car model may play a role, it isn’t all that is used. For example, let’s say you’re a 45-year-old driver of a sporty Mercedes-Benz coupe with a perfect driving record. This could mean that you have a cheaper premium than a 20-year-old driver with a recent at-fault accident on their record, even if they drive an older Toyota Camry.

Our Auto Insurance Specialists Are Here to Help  

When it comes to auto insurance myths, any misinformation out there could lead to costly mix-ups or insufficient coverage. Remember, everyone’s insurance policy is slightly different due to various rating factors and levels of coverage. 

At AIS, we pride ourselves on successfully helping our customers navigate the auto insurance market. To learn more about the coverages available to you and how AIS can help you find potential savings, call our insurance specialists today at (888) 772-4247, or start a free quote online.

The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.

Crimes such as burglary, robbery, vandalism, shoplifting, and employee theft cost businesses billions of dollars each year. In 2020, statistics from the U.S. Federal Bureau of Investigation show property crimes alone constituted 60.5% of the overall 8.9 million business crimes committed, costing companies $17.2 billion in losses. Don’t let these incidents catch you and your business off guard. Here are seven ways to reduce the risk of burglary and theft.

Protect Your Business From Theft With These 7 Tips

The best way to prepare for theft is through prevention. Start by taking a hard look at your business – everything from its physical layout, employees, procedures, and security. Identify any weak spots your company might have and solve those issues before any crimes arise.

1. Hire Honest Employees

Meeting prospective employees face-to-face and performing background checks could help you weed out any potential employees who might have a concerning history. But don’t just stop there. Do everything you can to build loyalty and trust amongst your employees. If they feel like they are being treated well and compensated fairly, they will be less likely to commit insider crimes.

2. Install a Security System

The presence of any security systems such as sound alarms, motion detectors, heavy-duty locks, and CCTV cameras are often enough to deter any burglars from acting against your business. Many security systems are customizable and affordable. Just make sure that your system can be monitored and recorded remotely from anywhere.

3. Ensure You Have Up-To-Date Equipment

This may seem like a no-brainer, but faulty, broken, and even out-of-date equipment makes it easy for thieves to break in. If you are still using traditional locks, consider pin or keycard entry systems, as these options give you data about who is entering and exiting your building. Fix broken doors, windows, and gates immediately. Remember that the longer it takes for a thief to enter your premises, the more likely they will give up.

4. Double Check Entry Points When Leaving Your Workplace

The majority of burglaries and theft occur as a crime of opportunity. Something as simple as leaving the door unlocked, windows unclosed, or keys left out in the open tempts thieves to steal and burglarize your business. To avoid becoming a victim, double-check and lock every entry point when leaving your workplace.

5. Don’t Tempt Burglars With Inventory

All high-value items should be stored in a locked casing, out of reach. Additionally, smaller and lightweight items that are easy for robbers to smash and grab should be placed far away from doors and windows. By securing your property and inventory, you significantly lower the risk of a robbery.

6. Increase Visibility

Your business should be well-lit inside and outside, especially at entry points and areas containing high-value items such as your safe and cash register. A property that is well-cared for and kept clean lets burglars know that a close eye is being kept.

7. Hire Security Guards or Loss Prevention Personnel

Trained and professional security guards can investigate anomalies, use good judgment, and see things security cameras can’t capture. Additionally, they understand how to handle different situations and can communicate clearly with law enforcement in the event of an incident.

How Small Business Insurance Protects Your Business From Theft

It’s important to understand that implementing these prevention tips does not eliminate the risk of theft. Business insurance helps protect from financial loss related to theft in most forms. These business insurance policies below can help you financially recover in the event an incident does occur.

Commercial Property Insurance: Helps compensate your business for stolen inventory, supplies, equipment, and furnishing. Many business owners often benefit from having a Business Owner Policy (BOP), which bundles commercial property insurance coverage with general liability insurance at a more affordable rate than if these policies were purchased separately.

Inland Marine Insurance: If your business transports a variety of equipment and materials to a job site, Inland Marine Insurance provides coverage to your business’s properties while being transported. Items typically covered are production equipment, heavy machinery, rented equipment, and building materials.

Cyber Insurance: This insurance policy covers losses associated with data breaches and other cyber security issues or attacks on your business. Those costs include lost income due to a cyber event,  expenses related to notifying customers affected by a breach, costs for repairing damaged computer systems, and more.

Employee Dishonesty Coverage: While it’s important to have the right coverage to protect against crimes committed by outsiders, it’s also vital to have the right coverage to protect against crimes committed by employees. Employee Dishonesty coverage compensates for employee actions that may cause physical or financial harm to your business, such as embezzlement, unauthorized money transfers, and forgeries.

Get Your Business Insurance Quote From AIS Today

Figuring out your small business insurance needs and finding the best protection for your company can be simplified with the help of AIS. Let us help remove the stress of finding affordable business insurance so you can focus on growing your company. Speak with one of our Commercial Insurance Specialists today at (855) 919-4247 for a quick and easy free quote.

The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may differ from those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.