1. Your Policy Will Lapse Even Before It Expires
You might have heard that your auto insurance policy will lapse if these things happen to you:
- You got into an accident
- You were issued a ticket
- You left the state
Don’t worry because even if one of these things happens to you, your car insurance company will not cancel your policy. The only time they will cancel is if you haven’t paid your premiums. As long as you pay regularly, you can rest assured that your car insurer will keep their end of the bargain for the duration of your contract.
2. No-Fault Insurance Means You Are Not At-Fault
Although it can be confusing, having no-fault insurance doesn’t guarantee or in any way mean that you can’t be held liable in an accident. No-fault insurance is required by law to ensure that in case a driver got injured in an accident, their policy will be able to cover their medical bill regardless if the incident was caused by them or not.
3. If You Lend Someone Your Car, Their Insurance Will Cover the Damage
To sum it up, your car insurance policy protects your vehicle. If, for example, you let a friend borrow your car, and they, unfortunately, got involved in a road crash, your policy would pay for the damage. But, for instance, if your policy isn’t enough to cover the costs of the damage, then your friend’s policy can be used as backup coverage.
4. The Color of Your Car Determines the Price of the Policy
This is entirely false. Whether your car is painted red, black, or gold, it wouldn’t affect or be taken as a factor in pricing your insurance. The things that affect the price of auto insurance are but are not limited to the following:
- Your car’s make, model, body type, and engine size
- Your car’s safety features
- The predicted cost it will take to repair or replace your car following an accident
5. Younger Drivers Pay Higher Car Insurance Rates
Believe it or not, this is actually true. Younger drivers, specifically those under the age of 25, pay higher insurance premiums. The main reason behind this is that a huge percentage of drivers who get involved in an accident are mostly under 25 years old. On the bright side, the price of auto insurance gets cheaper as a driver ages, especially if they manage to maintain a clean driving record.
6. You Only Need To Buy the Minimum Auto Liability Insurance Required by Your State
Each state has its own required minimum amount of liability insurance that drivers need to acquire. Let’s take the state