3 Common Myths About Auto Insurance Debunked


Communicated Content – Auto insurance is kind of like your annual trip to the dentist: it’s a responsibility that you know you can’t avoid, no matter how much you want to. However, did you know there is a large amount of misinformation surrounding car insurance policies? This can make it tough for you to know if you’re choosing the right plan, paying the right amount for your policy, and much more.

To help you sift through this misinformation, we’ve compiled a list of three common auto insurance myths, along with the hard truths behind them.


  1. With Car Insurance, You Pay Nothing Out-of-Pocket in an Accident

What comes to mind as the main purpose of auto insurance? We’d be willing to bet that it’s covering costs in the event of a car accident where you are at fault.

What you may not realize is that not all expenses are covered by car insurance in the face of such incidents. Even if you have auto insurance, if you lodge a claim, you may have to pay an excess fee.

The exact amount of the excess will depend on the nature of your policy, the circumstances of the accident, as well as other factors. For example, a young and inexperienced driver may have to pay a higher excess than a driver who is older and more seasoned.

Since you may still have to pay money out-of-pocket for unforeseen expenses, it’s a good idea to cut costs where you can, including on your auto insurance. As a starting point, check out these awesome tips for paying less on car insurance.


  1. The Color of Your Car Can Increase Auto Insurance Costs

When shopping for insurance, a common question is if the color of your car will affect your insurance rate? People often pose this query under the assumption that red cars cost the most to insure due to how flashy and eye-catching they are.

However, this is a common myth. A number of factors go into determining your car insurance rate, including make, model, year, engine size, the driver’s credit score, and more. Color isn’t usually on the list, but it can be. For instance, you might be charged a higher premium if your car is a color of high demand and low supply.


  1. Mechanical Breakdowns Are Covered by Car Insurance

You might think that a blown-out battery or a leaky engine would be covered under auto insurance. Unfortunately, this is another pervasive myth.

Factors like general wear and tear, mechanical breakdowns, and part replacements/repairs are not usually included in car insurance plans. You’ll need to pay for these things with your own money, so it’s a good idea to start building a contingency fund to prepare for these circumstances. 

Understanding both the falsehoods and realities of auto insurance can be tricky. With the help of this guide, the process will become much easier. With this knowledge, you can explore the world of car insurance with ease and confidence, allowing you to make smarter decisions for yourself in this arena.

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