Myth #8 - Buying insurance online save me money.
Whether you buy your auto insurance online, over the phone or in person, your insurance policy likely won’t be important to you until you need to make a claim. A good independent insurance agent can help you analyze your current policy and make recommendations so you have the best experience possible when you have to use your insurance.
Myth #9 - “No-fault insurance” refers to an accident that is not the policyholder’s fault.
“No-fault insurance” simply means that your own insurance company pays for your injury-related bills, regardless of who is at fault.
Myth #10 - My car will be declared “a total loss” if it cannot be driven away after an accident.
Your insurance company will determine whether your car should be totaled. A total loss is declared when the repair costs exceed a certain threshold of the car’s present value. That generally falls between 50 and 70 percent, depending on the insurance company.
Myth #11 - If my car is totaled, my insurance will pay off what I owe on my loan.
When your car is totaled, your insurer will pay you the actual value of your car (before the accident), minus your deductible. You are still responsible to your lending institution for any amount outstanding on the loan or lease. The only way to cover the difference between the car’s actual value and the amount you owe on the loan is to purchase gap insurance.
Myth #12 - Thieves are more likely to steal new cars.
It’s actually the other way around. Statistics indicate that thieves tend to steal older cars. There are two primary reasons: 1) They are easier to steal and 2) They’re more valuable on the used-car-parts market, which is particularly strong, especially in a down economy.
Myth #13 - If items are stolen from my car, they are covered under my auto policy.
Generally, it’s your homeowners or renters policy that protects anything stolen from your car.
Myth #14 - Drivers of sports cars get more tickets and thus pay higher insurance premiums.
Not necessarily. A lot of other factors determine premiums. (A 35-year old Corvette owner with a good driving record will probably pay less in premium than a 24-year old Scion driver with points against his record.) According to a recent study by Quality Planning, a solutions consultant for automobile insurers, 9 of the top 10 cars with the most traffic violations were non-performance models.
If you have questions about any of these auto insurance myths, call us today at 800-922-8381 to get the facts straight!