Auto insurance. It’s something that nearly all of us have, and depending on where we live and our premiums, something we all gripe about. But where does our money go, and what does it really do for us? For those of you out there who don’t bother to read the fine print – and really, when it comes to that phone book of a policy, there’s probably more that haven’t read it than have – there are a lot of myths out there that have become mistaken for fact.
Since it’s important to know who and what is exactly working for you, insuranceQuotes.com has conducted a study to see just how many Americans buy into these myths, and is on a crusade to dispel as many of them as possible. With help from the Princeton Survey Research Associates, the site polled 1,000 American drivers at random, and as you might expect, some myths are more entrenched than others.
Here are the five most common car insurance myths according to insuranceQuotes, along with the truth that should put these misconceptions to bed for good.
1. 44% of Americans think red cars are more expensive to insure
They may attract more attention, and you might not want to blow through that speed trap in one, but just owning a red car doesn’t mean your insurance premium will be any higher. Astonishingly, of the 44% of Americans who believed this, the majority of them were 18 to 29 year olds. So get that red car, and as long as you use that long pedal on the left from time to time, you won’t be paying any more for your insurance.
2. Only 56% know that insurance covers you in an at-fault accident
In most states, insurance is required if you’re behind the wheel, but what good is it if your policy won’t cover you? Because a number of drivers only have liability insurance (and not collision too), many incorrectly believe that they’re on their own if an accident is their fault. But liability will cover any damage you cause, and backing that up with collision and underinsured motorist coverage means that the headaches will be kept to a minimum once the accident scene is cleared.
3. 28% of Americans don’t know how insurance companies pay off totaled cars
It’s never easy to deal with the aftermath of an accident, especially if your car gets totaled. Possibly because this doesn’t happen to people too often, a full 28% of Americans mistakenly believe that insurance companies cut you a check for what the wreck is worth. Not so – the company bases its payouts based on your cars market value before a crash.
4. 34% think items stolen from a car are covered by auto insurance
A good chunk of drivers polled believed that property stolen from cars is covered under their insurance policies. Unfortunately, that isn’t true. Stolen goods may be covered under renters or homeowners insurance, but it’s best to check with your insurance provider in the event that anything does happen.
5. 14% of Americans believe their policies cover repairs
So you’ve just bought a used car, and the timing belt decides to go. Hopefully, your car has a warranty that covers the work. Otherwise, you’re on your own. Just 14% of Americans believe that their insurance covers repairs, but of that, 23% were between the ages of 18 to 29, making them the largest group to believe this.
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