Busting the 5 Common Myths About Auto Insurance

It can be overwhelming to shop for auto insurance, given the number of insurance agencies and the wide array of products available. From online price wars to cash incentives offered by some of the biggest auto insurance brands, it’s not uncommon for a vehicle owner to make a decision based on misinformation, rather than facts. Despite the great effort that auto insurance companies make to educate consumers about coverage information, there still seem to be a few myths circulating about car insurance that confuse people.

Let’s take a closer look at these auto insurance myths and bust them once and for all, so you can get the best vehicle coverage based on truth.

Myth #1 – Red cars, older drivers, and teens get charged more for auto insurance.

These are all common misconceptions in regards to buying auto insurance. In fact, owning a brightly colored car, being an older driver, or even a new driver does not mean you will pay a significant amount more for the same coverage other drivers get. Statistically, drivers who have safe driving records will be charged accordingly. However, if you are a grandparent teaching your teen grandson how to drive your red convertible, use the same caution you would in any other driving scenario to avoid a spike in your premiums.

Myth #2 – If I switch car insurance companies, I’ll get penalized.

Insurance companies have wised up to the concept of loyalty programs, therefore they have offered incentives for safe drivers who stick with their company. However, insured drivers may worry they will lose out on valuable discounts if they switch to another company. Truth is, the new company has discounts too and you’ll soon benefit from those. Just check first before switching.

Myth #3 – High premiums mean better coverage.

Paying more for auto insurance does not mean you will get a higher level of coverage. This is because rates can vary widely based on a variety of factors, some of which are tied to geography and the model of vehicle you drive.

Myth #4 – Auto insurance only covers damage to your car.

While most auto insurance policies make provisions for damage to other vehicles during an accident (liability insurance) they do not automatically cover damage to your car and the associated repair costs. To get your vehicle covered, you need full coverage, also known as comprehensive auto insurance.

Myth #5 – Your personal car is automatically covered if you are self-employed.

If you are self-employed and using your vehicle for work related purposes, you are not automatically covered. Consider the kind of work you do, how you use your vehicle for business purposes, and if you provide transportation to others. Then talk to your auto insurance company about getting additional business liability coverage.

Dispelling these myths and others is often simply a matter of picking up the phone to speak with a knowledgeable auto insurance agent. If you'd like to save yourself from the hassle of buying insurance, just visit the True Rate Insurance website or give us a call today at 855-735-1600 to find the best Los Angeles Car Insurance policy for you.