6 Myths and Misconceptions About Auto Insurance

Everyone who drives needs auto insurance to safely (and in most cases, legally) drive on the road. Over the years, several myths have popped up about car insurance, from fake tips and tricks to misconceptions about what the insurance actually covers. Here are a few of the most common myths and the truth behind them: 

Rates are Higher for Red Cars

While the age, make, model and price of the car you drive can all impact your insurance cost, the color will not. This rumor came about because people believe red cars look faster than other colors. (The popularity of red sports cars also didn’t help the rumor.) There’s debate on whether red cars are more likely to get pulled over than other colors, but it appears that white cars are pulled over the most. Why? Because white is the most popular car color on the road. 

All Providers Offer the Same Coverage

There are items that almost every auto insurance policy will cover. However, levels of insurance coverage vary from one company to another. It’s important to carefully review what a policy covers and what needs to be added on when comparing policies. Some companies also emphasize customer service, which can be a breath of fresh air in a stressful situation like making an insurance claim. 

Auto Insurance Pays for All Vehicle Damage

When you’re in an accident and not considered at fault, you can be confident that most of the damage from the accident will be covered by your insurance company. However, depending on your policy, you may have to pay a deductible before the insurance company comes in. There are also situations in which your insurance company may not pay for the damage. Be sure to review your policy before putting in a claim.  

Rates Stay the Same Year After Year

Insurance companies bank on customers not shopping around for insurance when it’s time to renew. If a policy goes untouched, rates tend to creep up year after year. Some companies have caught on that consumers notice this trend and have begun rewarding customer loyalty by keeping rates the same or offering lower rates. Either way, it’s a good idea to check on your insurance premium every six months and shop around to see if you can get a better rate. 

Medical Bills are Paid For After an Accident

While medical bills may seem like an obvious expense for auto insurance to pay after an accident, they’re not always covered. In some cases, if a driver is found at fault, their auto insurance will cover the medical bills of the other driver. Any expenses not covered by auto insurance can often be covered by health insurance or through adding medical expense coverage to your plan.  

Auto Insurance Pays for Legal Costs

This one’s tricky. If you’re being sued, your insurance company can often cover the legal fees and hire an attorney on your behalf if needed. However, if you’re the one who is looking to sue, you will need to find your own lawyer and pay any legal fees associated with the accident. If you win the lawsuit, you may be able to collect legal fees from the at-fault party. However, this is not a guarantee. Keep this in mind before taking legal action after a car accident. 

Auto insurance can be tricky if you’re not sure what to expect. If you’re in the market for car insurance, the Nsure app can help you compare policies from 50 top-rated insurers in less than 5 minutes. Be sure with Nsure.