What are the Top 5 Auto Insurance Myths?

What are the Top 5 Auto Insurance MythsAuto insurance is a necessary requirement to protect against damage to vehicles, people, and property. However, how informed are you on the truths about car insurance? Before we examine the top five myths associated with these policies, be sure to review your Michigan Auto Insurance to ensure you are adequately covered.

  • Myth #1: Red Cars Cost More to Insure- Car insurance companies are typically only concerned with the year, make, model, mileage, and driving distance of your vehicle and will likely not even ask the color when calculating your rate. Although red, sporty cars are typically associated with reckless drivers, it is incorrect.
  • Myth #2: Thieves Steal New Cars Frequently- False, it is actually the opposite. A 2011 National Insurance Crime Bureau (NICB) noted that the top 10 most stolen vehicles were primarily made in the 90’s. This is attributed to being easier to steal as they are lacking the high tech security systems that today’s cars have. Further, as people are keeping their cars longer in a financially tight economy, these cars provide plenty of parts that can be sold and reused.
  • Myth #3: My Insurance Policy Covers Damage to My Car- Unfortunately, your specific policy will determine what damage it will cover. For example, liability insurance only covers damage or injury to another’s property or body, while comprehensive and collision coverage protect your own. Coverage laws vary by state and financial status on your vehicle.
  • Myth #4: My Policy Will Cover Vandalism and Theft- If you have comprehensive coverage, yes. Otherwise, you are not covered for any of these occurrences. Bear in mind comprehensive coverage protects you beyond just traffic related incidents.
  • Myth #5: My Policy Will Provide a Rental Car- Unless you have comprehensive coverage, your policy most likely will not include rental car reimbursement. However, adding this component to your policy only costs an average of an extra $1-2 dollars extra per month.

About Capital Insurance Group

At Capital Insurance Group, we specialize in offering comprehensive auto insurance coverage. We strive to provide competitive rates while keeping you completely informed on your policy. For more information about auto insurance, as well as our other personal lines, contact us today at (888) 296-0418.