5 Common Myths about Auto Insurance Costs

Car insurance myths can cause misunderstandings about vehicle insurance coverage and costs. At Shaner  Insurance Group, Inc., in Tucson, AZ, we can help separate truth from fiction, so you get a better understanding of how to obtain the best insurance coverage at an affordable cost.  

Myth: Car Color Affects Cost of Auto Insurance

Truth: A vehicle’s color has no bearing on auto insurance prices; however, such factors as a car’s make, model, engine size, cost, popularity for theft and age do affect insurance prices. A driver’s age, credit history, and driving record are also considered when insurers calculate premium prices.  

Myth: Credit Rating has no Bearing on Insurance Rates

Truth: Most insurers consider credit rating an important factor when configuring auto insurance costs. Credit scores indicate how well (or poorly) people manage their finances. A good credit score could qualify drivers for a discount on their premium.

Myth: Older Drivers Pay More for Auto Insurance

Truth: Actually, older drivers who have good driving records often qualify for reduced insurance rates due to their driving experience. By driving less, retired seniors could even get an additional reduction in their premium.

Myth: Alternate Drivers are covered by Their Insurance

Truth: As a rule of thumb, auto insurance coverage follows the car, not the driver. This makes you and your insurer responsible for damages caused by other people driving your car in the event of an accident (assuming you’ve given them permission to drive your vehicle.)   

Myth: Car Insurance Covers Theft of Valuables from a Vehicle

In general, auto insurance doesn’t cover theft of personal effects such as a laptop, jewelry, cellphone, etc., from a vehicle. Consumers may, however, be able to place a claim for these goods from their homeowner’s or renter’s insurance if the value of these goods exceeds the amount of their deductible.

For more information on auto insurance rates and coverage, contact us at Shaner Insurance
Group, Tucson, AZ.