4 myths about insuring your car

August 21 2018


There's no shortage of wrong information about car insurance. And unfortunately, making decisions based on half-truths can complicate your life and cost you money.

Need help deciphering myth from fact? Be aware of these commonly held beliefs that aren't quite true. 

Myth: Red cars cost more to insure. 

Truth: The type of car you drive does largely determine how much you'll pay each month in premiums. However, insurance companies are more interested in the make, model and age of your vehicle than the car's color. How safe your vehicle is and what it would cost to repair or replace it are key factors in determining premiums.  

Myth: If you total your car, you don't have to pay off the remainder of your loan.

Truth: Unless you carry optional gap insurance to supplement the difference between the balance of your loan minus the fair market value of the car, you could be facing a loss if you owe more than the car is worth. Review your options when buying coverage to make sure you minimize this risk.

Myth: Comprehensive covers everything. 

Truth: A better way to say it is that comprehensive insurance coverage will pay when your vehicle is damaged by something besides another driver. Essentially, it probably won't kick in for incidents triggered by a collision. However, it should cover damage caused by things like vandalism, natural disasters and fallen tree limbs. 

Myth: If a friend is driving your car, they're responsible for any damage done.

Truth: While that may be the most socially acceptable answer, it's not the rule. In most cases, the owner's insurance policy follows the vehicle, not the person driving it. So even if you weren't in the car at the time of the collision, you'll probably still have to file the claim.

Have questions? Reach out today.

The COBIA Insurance commitment to each client is dedicated to providing insurance products that provide quality protection with value pricing. Call today so you can be protected for tomorrow!