With all of the information available to you regarding auto insurance, sometimes it can be hard to tell what’s real and what’s fake. Luckily, we’ve broken down some of the most commonly asked questions so you know how much auto insurance coverage you need, the kind that’s best for you, and how to tell if it’s a smart investment. Here are 11 crucial things to consider so you know how Webb Insurance Group can protect your assets when it comes to collision coverage, towing and labor, rental reimbursement, and so much more!
True or False: You’ll Pay More Depending on the Color of Your Car
False! Many people believe that buying a red car will bump up the cost of your insurance. This simply isn’t true. It doesn’t matter what color car you own, whether it’s blue, pink, or yellow, as long as you’re a safe driver, you’re going to pay the same amount in premiums.
True or False: Your Auto Insurance Can Leave You High and Dry
False! Unless you’re involved in fraud or don’t pay your premiums, state laws ensure that your auto insurance continues to cover you until your term has ended or is canceled. Keep in mind though, if you’re consistently getting speeding tickets or into accidents, your insurance may choose not to renew with you when your policy ends.
True or False: Rental Car Coverage is Necessary
False… but recommended. Rental car insurance is always a good idea! The coverage will cover the cost of your rental car if it were involved in an accident and you can no longer drive it. Your own auto insurance will then kick in to cover any accidents or damage to the car.
True or False: Safety Features Can Save You Money
False! Let’s be honest, if your driving record isn’t the best, no safety feature in the world will make you a better driver or decrease your premiums. But, GPS tracking and anti-theft devices can help discount some of your premiums by protecting your car from being stolen.
True or False: No-Fault Auto Insurance Will Help Me Pay Medical Bills in an Accident
True! No-fault insurance only covers medical bills from the accident and lost wages up to a certain amount, but it will not cover the cost of any property damage. So whoever causes the accident will end up having to pay for damage, or if they don’t have insurance, then uninsured motorist coverage would step in.
True or False: Personal Auto Insurance Do Not Cover Business Use
True! If you’re using your car for any business-related uses, whether it’s travel or meeting with a client, your personal auto insurance will not cover any damage or accidents that occur during that time. Instead, you’ll want to purchase commercial auto insurance for full coverage in those instances.
True or False: When Something Is Stolen Out of My Car, Auto Insurance Covers It
False! Unfortunately, it is not unlikely for something to be stolen out of your car, especially laptops, phones, and other valuable items. Although auto insurance won’t cover the cost of replacing those items, renters and homeowners insurance will! Learn more here about how you can protect your valuables with Webb Insurance Group.
True or False: You Only Have to Pay the State Minimum Amount for Auto Insurance
True… but not recommended. You’re technically only required to pay the state minimum for auto insurance, but if you’re involved in a major accident, you’ll likely end up paying way more out of pocket. Additionally, if there’s a lawsuit involved, or if there are injuries and other complications, this may lead to having to file for bankruptcy if you can’t pay everything back. It is recommended that you always pay more than the minimum where it makes sense for you.
True or False: Your Friend’s Auto Insurance Will Cover the Costs if You Let Them Drive Your Car
False! If you let friends assume responsibility for your car and they get in an accident, your auto insurance is only in effect while you are driving. So, think twice before handing someone your keys and make sure that they also have auto insurance, as their policy will need to take over if they have an accident in any car. Either way, it will likely increase your premiums if anything were to happen.
True or False: As You Age, Your Auto Insurance Becomes More Expensive
True… to a certain extent. Your age does have an association with the cost of insurance premiums, but you won’t necessarily be paying more as you get older. Between the ages of 17 to 64, the average cost of insurance actually goes down. Once you turn 65 however, premiums begin to increase, but you may receive a couple of discounts to mitigate the additional costs.
True or False: Your Credit Score Has an Impact on Your Auto Insurance Rate
True! Having good credit is always important, but it is especially something to consider when purchasing auto insurance. Your credit score is one of the primary factors considered when determining the cost and premiums you pay for insurance. Having a higher credit score means you’re more likely to make payments on time and less likely to file an insurance claim.
At Webb Insurance Group, we want you to stay well informed about how to get the best auto insurance coverage and how to go about doing so. We hope this information will help you have a better understanding of your benefits and formulate a plan in case of emergencies. Contact us today if you have any questions!
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