When it comes to car insurance, it can be hard to know what to believe if you’re constantly hearing different things from different people. There seem to be a few car insurance myths that are most prevalent, so we’ve put together some information to help debunk them!
Myth #1: The Color of Your Car Affects the Price of Your Insurance
Truth: There are several factors that are known to impact the price of your car insurance premium, but your car’s color isn’t one of them! Instead, insurance companies look at things like the value of your vehicle, your driving record, and the age of your vehicle.
Myth #2: Minimum Insurance Requirements by Law Offer Enough Protection
Truth: Each state requires car insurance policies to include a minimum level of coverage. In New York, state law requires that motorists carry a minimum amount of liability insurance of $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. Mandatory “no-fault” coverage of $50,000 is also required.
People often assume this is enough coverage, but the truth is, motorists often require supplemental coverage. Car accidents often result in much higher claims than these limits, so without additional insurance, you’ll be left paying out of pocket for your claims.
Myth #3: The Higher Your Premium, The More Comprehensive Car Insurance You Have
Truth: If you’ve chosen to add additional protection that costs you more each month, you might have more comprehensive car insurance. However, your rate may just be higher because of your driving history or being with the wrong insurance provider. Expensive insurance doesn’t always mean better coverage, and the only way to ensure you have the right policy is working with an insurance agency who can get you the best rate on the market.