Auto Insurance Myths

Understanding your auto insurance policy can be a difficult task, so hopefully you rely on an independent agent to explain your policy details and how they better protect you.  Adding further confusion to auto insurance are popular auto insurance myths and how they can impact your rate and coverage.  Some of the myths even cause consumers to shy away from buying certain vehicles.  The purpose of this post is to debunk some of the popular myths that agents come across.Red Car

  1. The color of my car impacts my rate. Color actually has zero impact on your auto insurance rate.  It’s widely believed that red cars have higher rates because they may “look faster”…not true.  Insurance companies are more concerned about the year, make, and model of your vehicle.  The year, make, and model along with your driving record and credit score will help companies determine your rate.
  2. If I borrow my car to a friend, their insurance policy is responsible.  Not true. When you borrow your car to a friend, you’re also borrowing them your insurance policy.  In the state of Wisconsin, insurance follows the vehicle-not the driver.  Choose wisely when lending your vehicle to a friend! 
  3. My policy automatically covers theft, fire, vandalism, damage from hail, wind, fire, flood or a vehicle/animal.  These causes of loss are a few of many popular claim payouts for insurance companies.  Physical damage protection for your vehicle is provided through your comprehensive deductible (also known as other than collision)  as well as your collision deductible.  Each deductible applies to a particular set of losses, so be sure to consult with your agent to find out what you need for your vehicle.  Simply asking for full coverage without an explanation could leave you exposed to coverage that you thought you had.
  4.  My personal property is automatically covered in my car.  Example: your expensive golf clubs are stolen from your car.  It’s likely that your auto insurance policy  will not provide any coverage.  Why the vague answer?  Because this gray area can be easily solved by simply talking to your agent.  There are coverage features that you can add to your policy to provide a limit of protection against circumstances such as theft.  If there is no such coverage, you would have to file the claim under your home, condo, or renter’s insurance policy…subject to your deductible.  Consult with your agent to find out your specific policy details when it comes to your personal property and your auto insurance.
  5. I’m covered if I rent a car. When you rent a car, most personal auto insurance companies transfer coverage over to the rental vehicle during the time the rental is utilized by you.  However, this is an area that you must discuss with your agent.  Your agent may suggest purchasing a physical damage waiver or checking with your credit card carrier to see if they’ll pay for some of the rental expense.

Take advantage of your independent agent and ask them to help clarify any areas of confusion on your policy, hopefully the above auto insurance myths are no longer a worry to you.  Remember tat working with an independent agent not only opens up your options of insurance carriers to choose from, but also provides a knowledge outlet for complex questions on your policy, don’t hesitate to use them!  If you have any additional myths or coverage questions, please don’t hesitate to ask to have your policy reviewed.