We’ve all heard the myths before when shopping for a new car or for a new insurance policy. “Don’t do that because it will raise your auto insurance rates.” But is it really true? Let’s take a look at some of the most common misconceptions in the business.
Myth #1 – Don’t Buy That Red Car
Color has nothing to do with auto insurance rates. Your policy depends on the make, model, and engine size of the vehicle that you are driving. The age of the vehicle, the age of the driver, the driving record and the driver’s credit score can also play a factor in the pricing of the policy. But the color of the car does not mean anything and will not influence the price of your policy. So go ahead and live it up.
Myth #2 – If You Have Insurance And Someone Else Drives Your Car, You Are Covered
This depends on the type of policy that you get. You need to check with your insurance company to find out the details of what exactly your policy covers. If you often lend out your car, you will probably want to invest in a policy that does this and cover everyone driving the car. Sometimes some of the damage will fall back on your homeowner’s insurance, so be sure to ask your agent how the two are connected.
Myth #3 – You Only Need The Minimum Amount Of Insurance That Your State Requires You To Carry
North Carolina law requires that you carry a minimum of $30,000 in bodily injury coverage for each person, $60,000 total bodily coverage for all persons in the accident, and $25,000 of property damage coverage. Just because this is the minimum amount, it doesn’t mean that you shouldn’t get more. You should factor in the amount it would take you to replace your car, plus the amount of people that usually travel in the vehicle with you.
Myth #4 – Soldiers Pay More For Auto Insurance
This is a myth because most soldiers actually qualify for a discount on their car insurance. If for some reason the soldier has a bad driving history, the discount may not stand, but for the most part there is usually a military discount available. In order to prove that you qualify, usually you will need to provide documentation showing that you have been in the military or are currently in the military.
Myth #5 – Your Personal Auto Insurance Policy Also Covers Your Business Vehicles
When you are self-employed, sometimes the line between business and personal gets a little bit blurry. Your personal auto insurance policy may not cover your vehicle in a business accident. A business policy can be more costly, but it will protect you and your assets in case of an accident. If you have any other employees driving your vehicle, it is also important to look into a business policy to be sure everyone is covered.
When shopping for insurance, be sure that you pick someone who can explain all the options to you in a way that you can understand. Amistad Insurance is here to help and we’d be happy to sit down and explain your auto insurance policy to you. Give us a call today to get a Raleigh auto insurance quote.