5 Biggest Myths about Car Insurance

In Indiana, drivers are required to carry a certain amount of car insurance or carry proof of self-insurance (though this isn’t a good option for most people). There are many common myths that prevail about auto insurance. Here are the 5 we hear most frequently:

1. Owners of red cars pay more for car insurance. This is one that is considered fact by most people, but it just isn’t true. Some people who drive red cars may pay more on insurance, but it isn’t usually because auto insurance companies have rules about this. Most insurers won’t even ask the color of your vehicle when you get your quote.
2. Any one ticket can send my rates soaring. This may be true in some cases, but often drivers can take a defensive driving course to keep a ticket from affecting insurance rates, and depending on your specific policy, you may not even need to take such a course to keep your rates the same.
3. I have the minimum amount of required car insurance, so I’ll be covered if my car is damaged by hail, a storm, fire, or vandalism. Actually, the liability insurance required by the state usually does not cover these incidents. You may want to consider adding comprehensive coverage if you wish to be covered for such events.
4. The less my car costs, the less I have to pay for insurance. There is some truth to this when it comes to things like comprehensive coverage. However, there are many issues that go into deciding how much a policy costs. Even if you drive a less expensive car, its weight, age, or the size of its engine could result in higher costs than a smaller, more expensive car. It depends on many factors.
5. Insurance companies charge an arbitrary amount and are largely unregulated. Insurance companies are required to submit the rubrics that they use to determine rates to regulatory agencies, and cannot choose capricious amounts.

For More Information

No matter what situation you find yourself in, the Indianapolis auto insurance agents of Insure on the Spot can help you get the best policy for your buck. Call us today at 1-888-972-SAVE for a free quote.