1. My rates will go up if I get a traffic ticket. This is not always true. Not all tickets are counted against you. Also, most insurance companies only pull the (MVR) Motor Vehicle Reports randomly after the initial purchase. Chances are if you get a ticket during the policy period it won’t hit your policy for a while, if at all.
  2. Red cars cost more for insurance. False! This could not be farther from the truth. Not only does the insurance company not care about your vehicles color, but has no way to even know this information. Rates are determined based on the car details from the (VIN) Vehicle Identification Number, and that information does not include vehicle color.
  3. The longer you stay with a company, the lower your rate will be. This is again not always true. There are some discounts you will most likely get for continuing coverage with the same carrier but that does not mean your rate won’t change based on other factors such as age, driving history and rate changes in your area.
  4. “No fault” means I was not at fault. “No fault” usually means that your state regulates each insurance company to pay injury claims for their insured regardless of fault. This keeps lawsuit costs down but you still can be considered at fault and be charged accordingly.
  5. Credit doesn’t determine rates. False! Credit is one of the major insurance rating factors in most states. It’s not the ONLY factor but a very important one. Credit shows financial responsibility.
  6. Anyone can drive my car if they carry insurance on their vehicle. This is somewhat true in the sense that you can allow someone to use your car if they are not a regular driver of it. Keep in mind however, that the insurance follows the vehicle and not the driver. The vehicle owner is responsible for any liability or damage the driver causes while operating it. Also, your insurance would be responsible to pay or not pay, any claims pending an investigation of each incident.
  7. Personal property inside the vehicle is covered on the auto insurance. This is not true. If you carry anything valuable around inside your car and it becomes damaged or stolen these would not be covered under the auto policy. It would be wise to check with your Homeowners insurance to see if they would be covered under that or can be added.
  8. I have “Full Coverage” so rental is included. This coverage is usually an additional coverage selected at an additional cost.

Always be sure to check and never assume to avoid a bad claims experience. Agents work for the customer! Check with your agent when you are unsure about something.