When purchasing any insurance policy, it is extremely important to know and understand the factors that can affect your car insurance premium rates and coverage. Still, countless car and truck owners do not know how to separate auto insurance fact from auto insurance myth. Luckily, we at Barrick & Associates Insurance are here to help!
Auto Insurance Myth #1: Car Color Affects Insurance Rates
Of course color doesn’t matter! What will affect your insurance premiums are your car’s sticker price, make, model, body type, engine size, the cost to repair it, its overall safety record, the likelihood of theft, the age of the vehicle and the age, driving record and credit history of the driver.
Auto Insurance Myth #2: It Costs More to Insure Your Car When You Get Older
Actually, the opposite is typically true. Many drivers over 55 years of age can, in fact, qualify for a reduction in auto insurance rates. If you are retired or are not employed full time, you may also be eligible for a discount of up to 5 percent off your car insurance.
Auto Insurance Myth #3: Your Insurance Covers Theft, Vandalism, Damage by Natural Disasters, etc.
You will need to purchase both collision coverage and comprehensive coverage to fully protect your vehicle from all types of damage. These coverages are optional and not part of a standard auto insurance policy.
Auto Insurance Myth #4: You Only Need the Minimum Amount of Auto Liability Coverage Required by Law
Most states require you to purchase a minimum amount of liability coverage. Yet, accidents, legal fees, and hospital bills often cost more than your minimum limits will cover, meaning you will end up paying out-of-pocket.
The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
Auto Insurance Myth #5: If Other Drive Your Car, Their Insurance Will Cover Them
In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the owner’s insurance company must pay for damages caused by an accident. However, policies and laws differ from state to state. So familiarize yourself with these differences before allowing someone else to drive your vehicle.
Auto Insurance Myth #6: Personal Auto Insurance Covers Business Use of Your Car
No, no, and, did we mention, no! If you use your personal vehicle for work, you will most likely need business vehicle insurance policy.
If you have any further questions about Auto Insurance in Hanover, Pennsylvania, please contact the insurance experts at Barrick & Associates, Inc. to learn more. Call 1-800-548-9810 or click here today!
Whether you’re looking for business insurance or auto, home, life, or health insurance in Hanover, PA, our qualified and knowledgeable staff will help you find the right policy to best suit your needs. And we do much more than just help you purchase a policy. We also assist in submitting claims and customizing programs for your business. We specialize in providing customized insurance protection for Automobile Dealers, Auto Service Centers, Auto Body Shops, Contractors, Farms and Restaurants, as well as Personal insurance policies. And with all of our insurance services, Barrick and Associates offers a “Money Back Guarantee.”
We are the leading provider of insurance in Hanover, Pennsylvania.
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Sources:
Eight Auto Insurance Myths Insurance Information Institute