There are just a ton of insurance myths talked about, some of them might be true or some of them might be completely false. But no need to worry we are here to bust those insurance myths for you.
The insurance costs are higher for red cars.
This myth is busted. There is just no difference if your MINI Cooper is red or your Chevy is rose gold. The color has no impact on your car insurance price. Some of the insurance companies are not even asking what color your car is. But if you have custom paint jobs this is another story—if you paint your vehicle, make sure to add the optional coverage “custom parts and equipment” to your policy.
Comprehensive coverage is the same as full coverage
This myth is busted. You might think just by the word that “comprehensive” coverage is all that you need. But actually, the coverage only protects you from things out of your control like theft and vandalism. It will definitely not cover you if your vehicle collides with another car or object.
Personal car insurance covers my vehicle for business use
This myth is busted. Typically you are covered by your personal policy for minimal business duties. But a commercial car policy will be required if you’re using your vehicle for delivery or transporting passengers for a fee. You also need commercial auto insurance for certain types of vehicles.
Insurance for cheaper cars costs less
This myth is busted. If your car is large and weighs a lot, or it’s just an uncommon model, it might even cost more to insure than a more expensive common smaller car. But the comprehensive coverage is usually less for a cheaper car.
Insurance companies do hard pull credit for quotes and then my credit takes a hit
This myth is confirmed, then busted. This is correct, insurance companies may check your credit report to provide the most accurate quote. But, it’s a soft inquiry only, meaning your credit score will not be affected at all. You could quote hundreds of insurance companies in one day, and your score will never change.
Other drivers’ actions could change my rate
This myth is confirmed. The location that you are living at has an important part in your insurance rate. So if there is a drastic increase in traffic or accidents in your ZIP code area, that may lead to a massive number of claims—which means more risk for your insurer. Insurance companies will definitely adjust the rates in those areas. But this works both ways. If you live in a ZIP code area that doesn’t have much traffic and auto claims, your rate will decrease because of less risk.
My policy is covering me if I’m driving a rental car
This myth is confirmed. Yes, your everyday insurance covers rental cars, same as driving a regular ride. Your comprehensive and collision coverages from your auto insurance will carry over your rental car. The only exception is if you’re renting a specialty car, in that case first check with your insurance company to make sure you’re covered.
Accidents that were not my fault could raise my insurance rate
This myth is confirmed in some states. This varies from state to state. In most of the states, you won’t see an increase at all. But in other states, your company might increase your rate—so it depends on your state and your insurance company.
The majority of insurance companies have compiled data that shows that some drivers have a bigger chance of being involved in accidents that aren’t their fault. This kind of risk means a higher rate.