There are a lot of responsibilities associated with owning and operating a vehicle. Not only do you have to maintain your car, truck, or SUV, but you also need to fill it with gas, pay taxes, and register it with your local government. In addition, you also need to insure your vehicle, which can be an overwhelming and costly process if you are not familiar with the different types of coverage available. Here a few myths regarding car insurance that you should learn the truth about.
Minimum Liability Coverage Is Sufficient
Each state has their own guidelines to follow when determining how much auto liability coverage is needed on a vehicle. If you are at fault for the accident, the liability coverage will pay for property damages, injuries up to a certain amount.
While your minimum requirement may be enough for the state's guidelines, this liability may not be sufficient if you are sued because of the accident.
Even if you have full coverage, which consists of liability, collision, and comprehensive coverage, there are limits to how much is actually covered. Therefore, you may have the coverage, but the coverage may not be sufficient for paying for extensive damage or injuries.
Red Cars are More Expensive to Insure
Another common myth people believe is that red cars are more expensive to insure no matter what type of coverage you choose.
It is important to remember that color does that actually affect your insurance rates. Insurance companies will take into account the make, model, and year of your vehicle in addition to its overall value and size of the engine.
If you have purchased a red sedan, you do not need to worry about paying more to insure your vehicle. However, if you have purchased a red sports car that is equipped with a turbo-charged engine, you will most likely pay a higher premium than someone driving a red sedan.
Homeowners Insurance Covers Vehicle Damage from a Fallen Tree
Understanding which policy covers damage to your car can be confusing. For example, if a tree in your property falls onto your car and causes damage, you may be confused by which insurance policy will cover the repairs.
In most instances, your auto insurance policy will cover the repairs to your car, unless the car was parked in your garage or a carport when the tree caused the damage. If this is the case, you would file a claim with your homeowners insurance policyholder, since the tree damaged both your home and your car.
One of the easiest solutions for handling these claims is to use the same insurance company for all of your insurance needs. Bundling these services can make the claim's process easier, but many companies also offer discounts for multiple-policy holders.