8 Common Car Insurance Myths March 25, 2020 There’s a lot of misinformation that circulates about Car Insurance. To help separate fact from fiction and ensure you’re on top of your Auto Insurance, we’re debunking the following 8 common myths. Myth #1: The color of my car paint impacts my Auto Insurance premium The color of your car has no impact on the price of your premium. Some features that do impact your premium include the car’s make, model, body type, year, engine size, etc. With this in mind, feel free to drive the car color of your dreams. Myth #2: I only need the minimum Auto Insurance required by law It’s true that you only need the state’s minimum level of Auto Insurance to drive legally in Oklahoma. However, purchasing the minimum level is usually not the best choice. If you are at fault in an accident and the other party sues you for damage, you may have to use your own money to pay any losses that exceed what the minimum level of coverage protects. Talk to an agent to see how much coverage you may need based on your vehicle. Myth #3: Personal Auto Insurance will cover business use of my car Using your car for commercial reasons comes with its own set of risks. You may need to look into getting Commercial Vehicle Insurance in order to ensure that you, your employees and your inventory are protected. Myth #4: Comprehensive and collision coverage are the same Comprehensive coverage and collision coverage protect your vehicle in different circumstances. Comprehensive coverage pays for damage to your car sustained by incidents not related to a collision. Some examples include hail, flood, falling tree limbs, break-ins, vandalism, and run-ins with deer. Collision coverage pays for damage to your car by a collision with another vehicle, tree, pole, pothole, or guardrail. Myth #5: My insurance will pay off my loan or lease if I total my car If an accident totals your car, your Car Insurance will pay what the market says your car was worth before the accident – the Actual Cash Value (ACV). Most commonly because of depreciation, a driver with a loan on their vehicle will owe more on the vehicle than the vehicle’s ACV, leaving the driver with the responsibility of the difference. Talk to an agent about extra coverage options to fill in this gap. Myth #6: Auto Insurance includes towing or other assistance I may need on the roadside A typical auto policy does not include this coverage, but you can add a Roadside assistance option to your policy. Roadside assistance will pay for costs associated with towing your disabled vehicle. Additionally, other services needed may be covered, like gas for an empty tank, battery jumping and changing a flat on-site. Myth #7: Auto Insurance will pay for a rental car after an accident Many people believe that car insurance will pay for a rental car after an accident. Unless you have a rental car reimbursement on your policy then typically your insurance will not pay for a rental. Luckily, this is an easy addition to make to your policy. Myth #8: A ticket will always increase my Auto Insurance premium Insurance companies consider a number of factors beyond a speeding or driving ticket to set auto premiums. Drivers with speeding tickets may be considered higher risk, and may be charged more for Auto Insurance premiums. On the other hand, if the driver is over the age of 25 and has not had a similar violation in the last three years, the premium may not be raised, as long as the person avoids getting another violation. The best course of action is to drive safely at all times. Keep these facts in mind to stay protected and prepared for any auto-related incident. Contact your OKFB agent to be sure that your policy covers everything you could need.