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Top Five Car Insurance Myths


If you drive, you probably have insurance, but how much do you actually know about what factors go into setting your premium price.  Many myths circulate about car insurance, but most of it is fodder for the rumor mill. Here are some of the most common pieces of misinformation:

Color Matters
Some people believe that a car's paint color affects the auto insurance premium. This myth goes hand in hand with the theory that red cars are somehow able to “go faster.” In truth, car color is not used to determine your auto insurance rate. Make, model and year are used to determine a vehicle's theft frequency, safety and value for auto insurance purposes. 

Speed Up
Although speeding tickets are not great for your driving record, receiving a ticket is not a guarantee of a premium increase as so many believe. A single minor speeding ticket generally has no affect on auto insurance rates, but multiple tickets (especially in a short time period) will likely boost your auto insurance premium.

DUI Blacklist
Another myth perpetuates the fallacy that after a DUI a driver will be unable to get insurance. The fact is, as long as a person has a driver's license, he or she is insurable. Some insurance companies choose not to cover DUI offenders, but it is not an industry-wide decision. Premiums will definitely increase, but a DUI alone does not prevent one from obtaining auto insurance. However an offender cited for DUI should be very meticulous about following the laws because any subsequent infractions can have severe legal repercussions, not to mention that his/her auto insurance premium will definitely shoot up.

Borrowed Time
Confusion often ensues after an accident occurs in a borrowed vehicle. Whose insurance is responsible: the borrower or lender? The truth is that the owner has granted permission to use their vehicle then the owner may be at least be partially responsible for any damages incurred in an auto accident. So keep in mind that when you share your car, you’re sharing your auto insurance. After all, the car is insured, not the driver. 

Fully Covered
Perhaps the name is misleading, but full coverage doesn't always cover everything. There are varying degrees of full coverage, and if damages exceed the policy limits, the driver is responsible for out-of-pocket costs. Glass and rental coverages are usually not bundled in comprehensive or collision coverage and need to be added to a policy or paid independently. Items stored within vehicles are also usually not covered unless you have comprehensive coverage. At the very least, drivers generally have to pay a deductible before the auto insurance company foots the rest of the bill.





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