Auto Insurance Myths Debunked

2 minute read

Auto insurance policies can be confusing in and of themselves, but add in conjecture and myth and picking a policy can get downright complicated. Read on to separate fact from fiction. We set the record straight on some of the most persistent insurance fabrications.

 Myth: Smokers pay more.

Answer: False. Auto insurance companies don’t even ask whether you smoke or not when putting together a quote.

Myth: One speeding ticket will make my rates skyrocket.

Answer: Also false. Generally, you have to get two tickets to see a bump in your premiums. However, your driving history and the circumstances of the citation may have an impact on your rate. If this is your second or third ticket or you were caught going 20 or more miles per hour over the speed limit, you may be labeled as “high risk.”

Myth: My insurance rates will be similar to my neighbors.

Answer: False. Every insurance policy is individually determined. Factors such as years of driving experience, driving record, vehicle type and marital status are considered. Every person, every situation is unique and rates vary because of this.

Myth: Once you turn 25, your rates drop dramatically.

Answer: It depends. Prop. 103 mandated that years of driving experience be used to determine insurance premiums, not age. That being said, driving experience is just one of many factors insurance companies use to determine a quote. They’ll look at vehicle information, driving record, annual mileage, claims history and the statistics of other customers just like you.

Myth: Car color impacts policy pricing.

Answer: False. If you are worried about picking red or white—don’t be. Insurance companies aren’t likely to ask you the color of your car when they are compiling a quote. They care about the make, model, year and age of your car.

Myth: Crooks like to steal new cars.

Answer: This is false. Sure, any car can be stolen, but older cars are actually easier for thieves to pinch and there’s a huge “chop shop” black market for used car parts. Crooks in California, by the way, tend to favor imports such as Hondas and Toyotas.

Myth: If my car is stolen, my insurance will cover it.

Answer: It depends. If you don’t have comprehensive coverage, you are not covered. Comprehensive coverage pays for damage to your car that is not the result of an accident, such as; theft, vandalism, fire, weather and if you hit an animal.

Education is the key to getting the right insurance for your needs. Auto Insurance Specialists is available to assist with all your California auto insurance needs.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.