Cheap Full Coverage Insurance: Busting 11 Myths

Shopping for insurance is soul-crushing sometimes. Your financial security rests on which policy you choose. In recent times, there has been a lot of misinformation regarding cars and insurance. Here are some auto insurance myths and why they are inaccurate. So what is getting in the way between you and your cheap full coverage insurance? Let’s find out.

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Myth 1: The Color of Your Car Determines the Premium for Cheap Full Coverage Insurance

The majority of the population believes that the color of their vehicle, namely red, can affect policy premiums. Here’s the truth: It doesn’t. The color of your auto has not and will never add to your premium. Factors such as market price, model type, engine type, and vehicle condition determines premium rates, not color.

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Myth 2: Credit Scores Do Not Affect Your Insurance Rates  

Any rookie insurance agent can inform that your credit score is an essential factor in determining the premium for your auto insurance. A good credit score showcases your sound financial judgment and the ability to prioritize payments and purchases. According to Investopedia, credit score depicts a consumer’s reliability and creditworthiness, and it plays a vital role in a lender’s decision to offer credit. Insurance agents also use it to gauge how likely you are to make on-time premium payments and file an insurance claim. Thus, people with good credit scores pay less on their auto insurance premiums.

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Myth 3: Basic Insurance Means Cheap Full Coverage Insurance

Most basic insurance policies cover bodily injury liability, property damage liability, and personal injury protection. That may sound like a good amount of coverage but unfortunately if this was your policy, you would not be covered if an uninsured or underinsured motorist was involved in an accident with you. It also means that you would not be covered in the event of a collision. Comprehensive and collision coverage compensates for damage to your auto from events other than traffic accidents, such as hail, flooding, falling objects, vandalism, or collisions with animals. However, such conditions apply to personal vehicles owners. For business owners who may face similar risks, they will be more effectively covered through commercial auto insurance.

Purchasing all types of coverage is not any smarter; you will only be paying a higher premium for irrelevant protection. Consult with an expert insurance agent to examine your vehicle, identify risks, and find the right bundle for yourself.

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Myth 4: You Only Need the Minimum Amount of Liability Insurance Required by the State

Almost all states require you to buy auto insurance, but the type and minimum amount of car insurance required varies widely. Some states require only liability insurance, which covers bodily injury and property damage to third-parties, while some states require additional personal injury protection, which covers medical bills. Other states might also require uninsured and underinsured motorist insurance. However, collision and comprehensive coverage is optional for all fifty states. 

Having only the minimum coverage means that your car is not fully protected. It can also mean that you might have to pay more out-of-pocket if it exceeds the minimum amount.  

Myth 5: Personal and Cheap Full Coverage Insurance Also Covers Business Use of the Vehicles

Using your personal vehicle for business purposes leaves huge gaps in your policy that may expose you to unnecessary expenses in the long run. A vehicle used for commercial purposes has its own risks and liabilities.  

A separate commercial auto insurance policy is needed to cover business vehicles. While it’s likely that the cost for a commercial auto insurance policy will vary from a personal auto insurance policy, it depends on the nature of your business and the condition of your vehicles. 

Cheap car insurance may not be full coverage. However, it isn’t an excuse to not get the right kind of policy for your vehicle, personal or commercial.  

Multiple coverage options on your fingertips.

Choose from various options and select the policy
that best suits your requirement.

Myth 6: If Another Person Is Driving Your Car and Crashes It, Their Car Insurance Covers Any Damage or Injuries

For most standard auto insurance policies, when you allow a friend or family to drive your car and it crashes, the insurance that covers the vehicle is considered the primary insurance. Regardless of who was driving the car, the owner’s insurance will provide coverage and pay for incurred damages or personal injuries.  

If third-party damage is caused by the accident and it exceeds your limits, the driver may have to involve their own insurance provider to cover the costs. If the person doesn’t have auto insurance, they may be liable to pay out of pocket. 

However, be aware that there is the rare policy that only covers the driver(s) listed on the policy. Be sure to talk with your insurance agent and find out what your policy says.  

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Myth 7: Expensive Cars Incur Expensive Premiums

The purchasing price of your car has a minimum effect on your insurance premium. Most Insurance companies focus on costs to repair or replace parts and the vehicle model’s loss history to determine your premium.

Myth 8: Getting a Traffic Ticket Will Increase Your Premium Rates

While getting a traffic violation ticket is never fun, thankfully getting one for minor incidents doesn’t increase your auto insurance premium. However, if you violate serious traffic laws or if the frequency of those tickets is high, then the premium for your auto insurance will surely increase. Make sure you have a clean record overall so that you don’t increase your premium.

Myth 9: Smaller Cars Are Cheaper to Insure

Small, medium or large, the size of your car does not significantly determine your premium. You might think that you paid less for your car, so you will have to pay less to insure it. Some factors that determine the insurance premium are claims history; the condition of the car; how high the deductible is; the driver’s age; and the type of insurance you opt for.  

In short, cheap and full coverage car insurance is possible for cars of all sizes. 

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Myth 10: Older Adults Pay More for Auto Insurance

It may seem that older people pay higher premiums for their cars, but it is only a popular myth. Older people are typically more reliable, more likely to obey traffic rules, and more likely to drive under the speed limit. In fact, if you are over the age of 55, you are eligible for auto insurance discounts.  

Moreover, when senior drivers successfully take driving courses provided by AAA and AARP, they can apply for exclusive policies and discounts. If you need a cheap and full coverage car insurance today, you need to contact insurance experts today. 

Myth 11: Male Drivers Pay More Than Female Drivers for Cheap Car Insurance

Turns out, insurance companies do determine average car insurance rates by gender. However, it’s not the gender most Americans think it is. In 2017, the Consumer Federation of America sought 165 pairs of auto insurance quotes for men and women from the websites of GEICO, Progressive, Allstate, Farmers, State Farm, and Liberty Mutual. They found that while teenage males are charged more for car insurance than teenage females, 40-year-old and 60-year-old females with perfect driving records were routinely charged more than men. In six cases, their premiums were at least $500 higher than their male counterparts solely because they were female.  

Thankfully, some states have passed legislation that makes determining average and cheap, full coverage car insurance rates by gender illegal. In 2020, Michigan joined Massachusetts, Hawaii, California, Montana, North Carolina, and Pennsylvania in banning gender as a rating factor.  

Cheap Full Coverage Insurance: Key Takeaway

The insurance industry is full of incomplete and false information regarding auto insurance. It is best to do a bit of research and homework before purchasing a policy. You can also consult an insurance agency of your choice for better information and support. An insurance agent can examine your vehicle, identify the risks, make auto insurance coverage recommendations, and find you the right cheap full coverage car insurance with affordable premiums.

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