The auto insurance industry is large and can be difficult and complex to understand. With all the information going around, it becomes challenging to differentiate between facts and myths. Getting yourself and other users protected when you are behind the wheel is one of the best things to do. However, these myths have bound and left people misinformed about auto insurance coverages.
Like other myths, car insurance myths start from the truth, and then the truth is distorted as the information circulates. To help put your mind at ease and clear the misinformation, Kriener Insurance of Woodbury, MN, is here to demystify four popular auto insurance myths.
The color of your vehicle affects the premium rates
Perhaps this is the most common myth in the auto insurance industry. The truth is the color of your car does not affect your auto insurance costs. The cost has several determining factors such as the model of the car, the make, the engine size, body type, age of the car, and driving records.
Your credit does not affect your insurance rates
Your credit history is a significant factor that determines your premium cost. Insurance companies usually look at your credit score to check how well you can manage your finances and your likelihood of filing a claim. Those with good credit history pay less since they are seen as having a lower risk.
The minimum liability coverage is adequate
Although almost all states require you to carry the minimum liability coverage, it may not be sufficient in the event of an accident. It means you will dig from your pocket if your vehicle gets damaged, or you sustain an injury in an accident.
If someone else was driving your car during the accident, their insurance would pay for damages
This is also a common myth in the auto insurance industry. It’s important to understand that that auto insurance follows the vehicle — not the driver. If you lend your car to a friend or relative, your car insurance is the one that will be at play and not theirs. Regardless of who was behind the wheel, the vehicle owner’s insurance will take the day.
Get the facts in Woodbury, MN
With all the myths going around about auto insurance, you need to get it right when buying your policy. It would help if you worked with a trusted insurance agent like Kriener Insurance. Contact us today for all your auto insurance needs.