Debunking the Most Common Car Insurance Myths
Getting the best car insurance in Michigan is essential for all drivers. Sadly, it is hounded by endless myths and misconceptions, leading to confusion and even costly mistakes. It’s important to learn the facts and know the truth about these myths so you can make informed decisions about your coverage.
Car Insurance Myths Debunked
What Is Car Insurance For?
Car insurance offers financial protection against losses that may result from accidents, theft, or other damages that may occur to your car. Car insurance aims to help you manage the financial risks of owning and operating a vehicle.
If the car is damaged in an accident, your car insurance can cover the cost of repairs, medical expenses, and liability for damages to other people or their property. Depending on the type of policy, car insurance can also cover damages caused by natural disasters, theft, and other types of incidents. In many places, car insurance is required by law to operate a vehicle on public roads.
What Are the Myths Surrounding Car Insurance?
Myth 1: Red Cars Cost More to Insure
More than half of American drivers are convinced that red cars are more costly to insure. In fact, a survey of 1,000 adults showed that 44% of the respondents believed that driving red cars can affect auto insurance rates.
The truth is the color of your car does not affect the insurance cost. Insurance companies will look at the model of your car, location, driving record, and age to determine the rate; the color has no bearing and is deemed irrelevant. If you believe this myth, you may never get that bright red car you have always wanted.
Myth 2: Comprehensive Insurance Covers Everything
The term comprehensive is often misunderstood to mean that the policy covers all types of damages to the car. However, comprehensive coverage only covers damages caused by non-collision incidents such as theft, fire, vandalism, or natural disasters. Collision coverage protects your car against damage caused by hitting an object or another vehicle, regardless of who is at fault. Liability coverage is required to cover damages to other people or their property.
Myth 3: Insurance Follows the Driver, Not the Car
Another common myth is that car insurance follows the driver, not the car. Car insurance policies are tied to the vehicle, not the driver. If someone else drives your car and causes an accident, your insurance policy will cover the damages, not theirs. The at-fault driver’s insurance usually covers the costs if someone else causes an accident while driving your car. To ensure proper coverage, it is important to inform your insurance company if someone else regularly drives your car.
Myth 4: The Insurance Company Will Cover the Cost of a Rental Car if Yours Is Being Repaired
While rental car coverage is an optional add-on to your insurance policy, it is not automatically included. If you use a rental car while your car is being repaired following an accident, you must add rental car coverage to your policy or pay for the car out of pocket.
Are You in Search of the Best Car Insurance in Michigan?
At Encore Insurance, we offer care insurance policies at an affordable price. Our clients trust us because we provide hassle-free processes to help find the right policy for you, eliminating unnecessary stress, especially during claims. Contact us to get a free quote.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.