7 Common Auto Insurance Myths Debunked
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Contents
- 1 Introduction
- 2 Myth: You can save money by switching insurers
- 3 Myth: You will get the best coverage by purchasing a policy online or over the phone
- 4 Myth: You should only buy car insurance if you have a car
- 5 Myth: You will save money on your auto insurance premium by driving less
- 6 Myth: Auto insurance companies only care about making money
- 7 Myth: Older cars are cheaper to insure than newer models
- 8 Myth: It’s better to go with a smaller insurer than larger ones like State Farm or Geico
- 9 Don’t fall for these common auto insurance myths.
- 10 Conclusion
Introduction
Buying auto insurance can be a confusing process. Even if you’re only buying it for the first time, there are plenty of things that can go wrong when deciding how much coverage to get and which company to go with. There’s no shortage of misinformation about the topic either, which is why we’ve debunked some common myths about purchasing car insurance below:
Myth: You can save money by switching insurers
Truth: While it’s true that you could potentially save money by switching insurers, it’s not as easy as just signing up with another company and expecting a lower rate. In fact, what you’ll find is that the price difference between companies isn’t always significant enough to justify making the switch. That being said, if your current insurer offers a competitively priced policy with excellent coverage options and good customer service (and they should!), then there is no reason why you should consider changing policies at all–especially if other factors like location or price aren’t compelling enough reasons for doing so.
Myth: You will get the best coverage by purchasing a policy online or over the phone
The first thing to understand is that you can’t get a good deal without comparing prices. The next thing is that you can’t get a good deal unless you know what coverage you need, and that requires understanding your needs.
The last point–that understanding your needs is the key to getting the best coverage at the lowest price possible–is the one I want to focus on here because it’s so often overlooked by consumers who are looking for auto insurance quotes online or over the phone.
Myth: You should only buy car insurance if you have a car
You don’t need a car to buy auto insurance. You can purchase coverage for your motorcycle or scooter, as well as for other types of vehicles like boats and RVs. Additionally, if you don’t plan on driving at all–for example because you live in an urban area where public transportation is readily available–it could still be worth it for you to purchase some type of liability protection.
If you do have a license but aren’t planning on driving often (or ever), consider getting liability-only coverage instead of comprehensive/collision coverage; this will reduce your premiums considerably!
This is one of the most common myths in the auto insurance world. In fact, it’s so common that many people don’t even realize they’re repeating it. However, there are several ways to save money on your premium by driving less:
- Drive less often. By choosing not to drive as often (or at all), you’ll save money on gas, maintenance costs and wear-and-tear on your vehicle. You may also be able to avoid paying tolls or parking fees if you take public transportation instead.
- Drive more safely–and legally! Driving safely means obeying traffic laws and avoiding risky behaviors like speeding or texting while driving–the latter being illegal in all 50 states except for Montana.*
You can also try these other tips for saving money on auto insurance:
Myth: Auto insurance companies only care about making money
However, they are not in the business of making money; they are in the business of protecting their customers and providing them with affordable protection.
Auto insurance companies offer several different types of coverage options so that you can choose what best fits your needs: liability coverage (which covers injuries to others), comprehensive and collision (covers damage to your vehicle), medical payments coverage (provides medical expenses for you or passengers injured in an accident), uninsured/underinsured motorist bodily injury protection (UMBI).
Myth: Older cars are cheaper to insure than newer models
This is a common misconception, but it’s actually not true. In fact, older cars are more likely to be involved in accidents and require more maintenance than newer models.
When you’re shopping for auto insurance quotes, consider these factors:
- Safety features like airbags and anti-lock brakes make the car safer for you and other drivers on the road.
- The cost of repairing damage from an accident can vary greatly depending on where it occurred–a fender bender at home may not cost much more than $100 while an identical accident at high speeds could easily run into thousands of dollars (and possibly even tens of thousands).
Myth: It’s better to go with a smaller insurer than larger ones like State Farm or Geico
You may be able to find cheaper auto insurance quotes from smaller insurers, but they’re not always the best choice. Smaller companies can be less competitive on price and quality of service. They also might have fewer repair shops in their network–and if there’s an accident, you might have to wait longer for your car to get fixed. If you do decide to go with a small company for auto insurance, make sure that it has at least $5 million in assets (the minimum required by law) and has been around for at least three years.
Don’t fall for these common auto insurance myths.
Don’t believe what you read on the internet
Don’t believe what your friends tell you
Don’t believe what your insurance agent tells you
Don’t believe what your insurance company tells you
Conclusion
The bottom line is that you should always do your research when it comes to car insurance. You can save money by finding the right policy and company, but it takes time and effort. Don’t fall for common myths like those listed above because they won’t help at all!
