In North Carolina, you cannot skip out on car insurance. Like many other states, North Carolina requires by law that anyone driving around should have it. However, even if you have understood the law and even have this insurance, you may not understand how it works as well as you should. Not to mention with all the myths surrounding car insurance, you may end up getting surprised if you ever do get in an accident.
In order to break it to you more gently, here are three myths you shouldn’t believe.
MYTH 1: My insurance company will pay for property stolen from my vehicle!
Personal property, including cell phones, handbags, laptops, and any other types of electronics are not covered under an auto insurance policy. In some cases, these items might be covered by your homeowner’s insurance policy instead, but you will need to file a separate claim. That is why you need to remember to remove all pricey personal items from your vehicle and always keep them well out of sight of any passersby. These can be a costly loss on your end and in some cases, can also compromise your identity.
MYTH 2: I already paid for insurance, So I don’t need to buy another policy for my new car!
You will always need to get an entirely new policy when you insure a different vehicle. Even if you own an insured vehicle but aren’t planning on driving it, or you just paid for insurance on an old vehicle and decided to buy a different vehicle, your insurance company will need to run the numbers based on your new car’s VIN and issue you a new policy. Make sure you go over these details with your insurance agent and always inform them when you are making a new car purchase.
MYTH 3: My red car commands higher-than-average insurance rates!
Okay, this one isn’t that crucial to you, but this myth has been around for decades. Insurance companies don’t take the color of the car into account when determining insurance rates, but will take the make and model of the vehicle, how often you drive the car, and your driving history into account. The fact that your vehicle might be a red sports car instead of a red family sedan could have much more of an impact on your insurance rate than its color. So if you have always wanted a red car, go right ahead!
MYTH 4: Your credit doesn’t affect what you pay for insurance
Though it’s not a primary driver of your car insurance rate, your credit score does affect how much you will pay for your plan. This is because your credit lets your provider know how well you keep up with your finances and bills. According to financial services comparison platform Finder, algorithms that insurance providers run often consider applicants with low credit scores as higher insurance risks. As such, they may pay a higher premium.
In contrast, increasing your credit score by 100 may save you up to $1,000 a year on your car insurance payments, Finder stated. As such, you should make sure you’re up to date with your credit card, phone, and utility payments before you apply for insurance.
MYTH 5: Your Insurance Covers Your Vandalized or Stolen Car
If you only have collision and liability insurance, your car won’t be covered against vandalism, theft, or acts of God like storms, hail, or falling trees. These instances are covered by comprehensive insurance, instead. However, don’t let the word “comprehensive” trick you into just buying that type of coverage alone. Comprehensive insurance only covers damage caused by factors outside of collisions. As such, it’s always best to talk to your agent about the different types of insurance you may need.
MYTH 6: Personal Car Insurance Covers Business Use, Too
If you’re hauling your inventory to the office and you get into a collision, you and your business may get sued for the damage you caused if you’re at fault. Your personal car insurance will only cover you. Your company may have to shell out cash to compensate for injuries and other harm you may have caused. As such, you should also get business vehicle insurance if you often use your car to run your company.
If you need any help getting or understanding your Raleigh car insurance policy and you live in North Carolina, contact us at Amistad Insurance Services to learn more.