5 Common Misconceptions About Auto Insurance

5 Common Misconceptions About Auto Insurance
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Introduction

If you’re like most drivers, you assume that auto insurance is a necessary evil. And it is! But did you know there are some common misconceptions about car insurance that could save you money? We’ll cover five of the biggest ones here:

“I don’t need auto insurance.”

You may think that you don’t need auto insurance, but there are many reasons why it’s important. Let’s start with the basics:

  • You need auto insurance to protect yourself and your family. If you get into an accident and someone is injured or killed, they can sue you for damages. If they win their lawsuit against you, then they might be able to take away all of your money (and possibly even more). This means that without auto insurance, even if an accident was completely unavoidable and not at all your fault–even if it was just a minor fender bender–you could still end up losing everything because someone else filed a lawsuit against them for damages related to injuries sustained during said accident! And those kinds of lawsuits happen more often than most people realize; according to Consumer Reports magazine (June 2016), “Nearly one-third (31%) say they have been involved in some sort of crash over the last three years.”

“I can’t afford auto insurance.”

The cost of auto insurance depends on many factors, including the amount of coverage you need, your driving record and the type of car you drive. The best way to know how much it will cost is by getting several quotes from different companies.

If your car is new and expensive, chances are that it will cost more than an older vehicle with fewer features. But even if they’re both in similar condition and have comparable coverage levels–which means they have similar deductibles and premiums–the more expensive vehicle may have lower rates because it costs more money for thieves to steal it!

“If I pay my first premium, I’m covered.”

While it’s true that you’ll be covered from the moment you buy your policy, the coverage will not kick in for up to 30 days.

In addition to this waiting period, there are a few other things to keep in mind about auto insurance:

  • If your car is totaled or stolen before the end of the first month with Progressive Auto Insurance Company (or any other company), we’ll still pay out what we owe under our policy terms and conditions–but only if they are met.

“The best way to save money on auto insurance is to shop around.”

You can save money by shopping around. You should shop around every year and compare policies and premiums, but you may not need to do so every month. If a company has given you great service for three years and their rates aren’t too high, it might be worth staying with them rather than switching to another company just because they have slightly lower rates.

The best way to save money on auto insurance is by increasing your deductible–not changing companies or policies all the time! When choosing a deductible amount, consider how much of an impact this will make on your monthly budget versus how often accidents happen in relation to other expenses like food or rent (if applicable).

“My car doesn’t matter — I still have to get the same coverage as someone else’s car.”

You can get different coverage levels based on your car’s make and model. For example, if you have an older vehicle with high mileage, you may want to get a lower liability limit than someone with a newer car who has less mileage. You may also want to downgrade your collision or comprehensive coverage if the cost of replacing or repairing your vehicle would be more than its current value.

To determine what kind of policy is right for you, consider how much risk you’re willing to take on–and what kind of coverage best fits within that risk tolerance. If you own an older car but have good credit history, getting lower-cost liability insurance might be ideal because it will help keep down premiums over time as well as provide peace of mind when driving around town in case something happens unexpectedly (like hitting another driver). On the other hand, if there are family members who drive this same vehicle regularly and/or live nearby where they could easily borrow it from time-to-time (and thus incur more potential liability), then increasing their personal injury protection might be worth considering so that everyone involved can receive equal compensation should anything go wrong while driving around town together outside work hours.”

The truth about auto insurance might surprise you!

Auto insurance is a necessity. It’s not just about protection for your car and yourself, it’s also about protecting others on the road. Auto insurance can help pay for damages to other people’s cars if you are at fault in an accident, as well as medical bills for any injuries sustained by others who were involved in the accident.

Auto insurance helps protect everyone from accidents caused by irresponsible drivers who don’t have adequate coverage or care about their actions behind the wheel. In fact, some states require that all drivers carry auto insurance before they are able to get behind the wheel at all! That means if you skip out on buying auto insurance because it seems unnecessary or expensive–or both–you could end up paying more than just what premiums cost each month: fines may be levied against those who choose not buy coverage required by law; plus there’s always jail time waiting down the line if someone hits another person with no way of paying back those costs incurred due to negligence (which includes driving without liability coverage).

Conclusion

If you’re looking to save money on auto insurance, the best way to do so is by comparing rates and finding the right coverage for your needs. Shop around and compare prices at different providers before making a decision. If you want help with this process, we can help!

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