Auto Insurance Myths Debunked!
Updated: Jan 6, 2020
We dive right into the wide world of auto insurance to separate truth from rumor.
Myth# 1. "Color of vehicle determines the price of auto insurance."
Whether your vehicle is "dishwater brown", alien green, or purple with yellow polka dots, your premium will not be affected. While color does not determine the price of auto insurance, make and model of the car can have a significant impact on your rate as well as the zip code the vehicle is garaged in.
Myth# 2. "Your credit has no effect on your insurance rate."
Most auto insurance companies do a soft hit to your credit - that goes for both auto and home insurance, and your credit history and score could potentially make impacts to what your premium will be.
Myth# 3. "Personal auto insurance also covers business use of your car."
If you are a delivery driver, or use your vehicle for work in any way, your personal auto policy may not protect you in the event you have an accident, so it's important to inquire and ask your agent if a commercial vehicle policy is needed.
Myth# 4. "Auto insurance covers needed upgrades and maintenance."
Just as in homeowner's insurance, auto insurance does not cover regular wear and tear, including oil changes, brake replacements, or getting a paint job because you no longer have a taste for gold fleck.
Myth# 5. "Roadside assistance is automatically included in every auto policy."
Roadside assistance is an additional coverage not usually included with a standard auto policy.
Myth# 6. "If my friend borrows my car and causes an accident, his insurance will be the one used and not mine."
In Florida, the policy follows the car. Make sure you trust whoever it is you allow to use your vehicle.
Myth# 7. "The laptop in my car will be covered by my auto insurance policy."
Personal property such as your cell phone or laptop aren't covered under an auto policy. These items are typically covered by the personal property portion of your home or renters policy (minus the deductible).