Does driving a red car mean you pay more for insurance? Does
your insurance cover valuables stolen from your car? These are
some of the questions many drivers don’t know the answers to,
according to a survey conducted by Princeton Survey Research
Associates International. Here are five of the most common car
insurance misconceptions and the truth behind each.
1. Myth: Your car isn’t covered if the accident is your
Collision insurance covers the vehicle of the insured,
regardless of who’s at fault for an accident. However, if
you carry only the minimum liability insurance required
by state law, your insurance covers only the damage
to the other driver’s vehicle, not your own.
2. Myth: Red cars cost more to insure than other
The color of your car has absolutely no effect on your
insurance rates, but the make and model of your car
do. Why? Safety ratings vary by vehicle, and safer
cars generally cost insurance companies less to cover.
3. Myth: Auto insurance covers valuables stolen from
Auto insurance does not typically cover items stolen
from your car, such as laptops or cellphones.
Fortunately, homeowners and renters insurance both
cover personal property stolen from vehicles. That
said, in many cases, the loss isn’t above the
4. Myth: Where you live doesn’t affect your insurance
When it comes to insurance, location does matter.
Accident and vehicle crime rates in your neighborhood
can impact premiums. Typically people who live in
urban areas pay more than those who live in rural
5. Myth: Your insurance coverage includes
Mechanical breakdowns, vehicle wear and tear, and
regular maintenance are not covered by auto
insurance. If your car is still under warranty, you may
be able to avoid the out-of-pocket expenses.