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Auto Insurance Myths and Misunderstandings

by Precise Leads

October 29, 2018

Some common misunderstandings about auto insurance.

When it comes to auto insurance, myths, fables and urban tales outmaneuver reality. Here are some common myths about auto insurance.

Auto Insurance is Not Mandatory

As of 2018, New Hampshire is the only state that does not mandate liability coverage. It’s clear why auto insurance is required while health insurance (until the ACA) has not been. When cars first took to the roads in the 1920s, accidents were accepted to be inevitable. Auto insurance aimed to protect other people from these collisions.

Most states consider driving without insurance a misdemeanor. A ticket can cost anywhere from $300-$1000. Getting into an accident without insurance will likely mean license suspension and in some cases prison.

Red Cars are Most Expensive to Insure

This myth likely took hold in the 1980s, when the ubiquitous red convertible and its accompanying reckless lifestyle became a common cliche. The truth is the color of a car has no bearing on the costs of an insurance premiums.

Traffic Tickets Will Cause Premiums to Rise

This isn’t always true. If a driver’s record is relatively clean, one minor speeding ticket may not trigger an increase. With at-fault accidents, however, drivers can expect an increase in their insurance premium.

Insurance Covers Property Lost or Damaged in a Car

Auto insurance does not cover personal items damaged or stolen in a car. Personal property is only covered by a home or renter’s policy.

Women Pay Lower Premiums Than Men

Okay this isn’t a myth, it’s true! Statistics show that men get in more accidents than women. Therefore men pay higher premiums.

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