When it comes to auto insurance, there are a lot of myths and misconceptions floating around. It is easy to separate auto insurance fact from fiction with a little bit of research. Here are common myths about auto insurance that research has disproved.
Myth #1: It’s better to let my insurance lapse and restart than go on a new plan
False: It is essential to realize that if an auto insurance plan no longer covers your car, you are at risk for liability exposure in an accident. Auto insurance provides liability coverage which protects you from lawsuits that might be filed against you if you are at fault in an accident.
To ensure that your car is covered under the new plan, contact your agent before canceling your current policy to ensure it is canceled for non-payment and not because of other factors.
Myth #2: Liability is all I need for auto insurance
False: It was once thought that liability coverage provided enough coverage to protect you from unexpected accidents. However, this myth has been dispelled by the research, which shows that comprehensive and collision policies add significant protection in the event of an accident.
Comprehensive insurance covers damage to your vehicle that isn’t caused by an accident, including vandalism, flooding, hail damage, fire, and theft.
Collision insurance covers damage your car sustains in a crash with another object or when you hit the median.
Myth #3: Insurance is the same all across state lines
False: Many people assume that insurance laws are universal, but in reality, each state is different in regulating insurance. Some states have more stringent laws regarding minimum coverage requirements, while others have requirements and restrictions based on driver age and experience.
Myth #4: I don’t drive much, so I don’t need insurance
False: There are many ways in which auto insurance can help you. It doesn’t always have to be a direct result of an accident. For example, if your car is stolen or vandalized and you have comprehensive coverage, you will get the money back to fix it.
It is important to know the facts when it comes to auto insurance. Anthony Lancaster Insurance Inc. in Memphis, TN is available to help you find the right policy. Anthony Lancaster Insurance Inc. in Memphis, TN is ready to answer any questions about your policy. Please call us today to learn more!