3 Common Car Insurance Misconceptions

Car insurance is a great way to keep you and your family safe. However, some common misconceptions about auto insurance may prevent you from getting the coverage you need. These misconceptions include a belief that red cars cost more to insure, that a rental car reimbursed add-on is only available in a limited number of states, and that uninsured/underinsured motorist coverage pays for injuries or property damage.

Red Cars Cost More To Insure

If you’re like many drivers, you’ve heard that red cars cost more to insure than other vehicles. This myth has been circulating for years, but there’s no scientific proof that it’s true. Several factors determine insurance costs. They include your age, your driving record, and the make and model of your vehicle. Also, your location and ZIP code will affect your premium. You can also get discounts on your coverage if you purchase anti-theft devices and have daytime running lights. You can indeed be charged more for car insurance if you’re caught speeding or have a history of at-fault accidents. However, a study by the St. Petersburg Times found that the color of your car doesn’t necessarily correlate with a higher risk of accidents.

Rental Car Reimbursement Is An Affordable Coverage Add-On.

A rental car reimbursement is a form of temporary transportation coverage that may be included in your auto insurance policy. It pays for rental car expenses when your vehicle is in the repair shop after an accident. This is a good option for those who don’t want to pay for a rental car but do not have another means of transport. According to experts in car insurance Newark, DE, you may choose to limit your coverage to a specific number of days. The higher the daily limit, the more money you can save by renting a vehicle, but you’ll need to make up the difference if you need to extend the period. The maximum amount you can get per accident is also significant to consider. Some companies offer up to $30 per day. However, that is only a small portion of the total amount you can receive.

Uninsured/Underinsured Motorist Coverage Pays For Injuries Or Property Damage.

Uninsured/underinsured motorist (UM/UIM) coverage is an option to protect you if you are involved in an auto accident with an uninsured driver. It is typically offered by insurance companies and can be purchased separately or as a part of an existing policy. Depending on the type of coverage, UM/UIM can cover medical costs, damages, lost wages, and even property damage. The costs associated with uninsured/underinsured motorist coverage vary from state to state. Generally, this type of coverage is cheaper than other types of insurance. Typically, a standard policy costs between 5% and 5% of the premium. However, the premiums can be higher in states with more uninsured drivers.

Jonathan Rice

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