Does the color of your vehicle affect the cost of your car insurance? If someone drives your vehicle and has an accident, will the driver’s insurance pay for the damages? These are common myths that surround the auto insurance industry in the US. At Globe Live Media we help you find out if any of them are true.

In the world of auto insurance in the United States, there are many factors that affect the price of your policy, such as your credit score or even the age of the insured driver.

Unfortunately, there are several myths that tend to confuse those interested in purchasing a policy that can prevent them from purchasing the insurance that is best for them (which can leave them financially unprotected in the event of an accident) or, on the contrary, can prevent them from even consider getting insurance, which can bring serious legal consequences.

For this reason, at Globe Live Media we show you the 8 main myths that surround the auto insurance industry in the US.

1- “The color of your car determines the price of your insurance”

According to the Insurance Information Institute of the United States (III, for its acronym in English), the color of your car does not affect the price of your car insurance policy.

The factors that affect the price of your policy are many and varied, among which are the type of vehicle, the model, its price, the size of the engine, its repair costs, your driving record, among others.

Also, insurance companies take into account the age of the driver and even his credit history.

2- “Car insurance is more expensive the older you are”

A widespread myth that is totally false: older drivers can actually access special discounts if they have completed accident prevention courses.

Also, seniors who don’t have full-time jobs (and therefore tend to drive less) can also get discounts on their policy.

However, it should be noted that these discounts usually vary depending on the state in which the driver resides and the insurance company, so, to obtain more information, it is convenient to discuss the matter with an insurance agent.

3- “Your credit score has no impact on your insurance policy”

Actually, your credit score can have an impact on the price of your insurance policy. In general, people with a good credit history can end up paying much lower insurance rates.

The reason for this is that, statistically, people with good credit scores tend to be less likely to make a claim with their insurance company, according to the III.

4- “Your insurance will cover you if your car is stolen, vandalized or if it is damaged by a tree, a flood or a fire”

This is true… But only if you have a collision and comprehensive coverage policy in conjunction with your standard insurance.

If your car is worth less than $1,000 dollars or is less than the cost of your insurance premium, these coverages may not respond to scenarios such as those raised.

However, it is advisable to have these coverages at all times, as they protect your vehicle against all types of damage.

5- “You only need the minimum insurance required by law”

Although almost every state requires you to have auto insurance with minimum liability coverage, opting for a policy of this type can mean that you are not financially protected in the event of any type of accident.

In general, the insurance industry recommended insurance is a minimum of $100,000 for bodily injury protection per person and $300,000 per accident.

6- “If another person drives your car, in the event of an accident, her insurance will cover the damage”

In most states, auto insurance that covers the vehicle is considered primary insurance. This means, in other words, that the car owner’s insurance is the one that will enter the scene in the event of an accident, regardless of who is driving it.

7- “The military usually pay more for insurance than civilians”

In fact, if you’re in the US military, you may qualify for a discount on your auto insurance.

You only need to provide your documentation to the insurance company, and you will have access to various discounts.

8- “Your car insurance covers the commercial use of your vehicle”

If you are self-employed and use your vehicle as part of your economic activities, your auto insurance may not protect your car. To do this, you must purchase a commercial auto insurance policy.

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