There are many car insurance myths floating around out there. How do you know which ones you can believe? Roadway Insurance, Inc., a MAIF car insurance provider, debunks some of the myths you’ve been hearing.
Your Car Color Impacts Your Insurance Rate
The color of a car means absolutely nothing when it comes to your insurance. Rates are impacted by certain characteristics of the driver, the safety features of the make and model in question, and how much it costs to repair or replace the vehicle. A beige sports car is still going to be more expensive to insure than a bright red minivan.
Your Insurance Covers Things Like Vandalism or Weather Damage
If you only have the minimum coverage on your car, you aren’t protected from these things. You’ll need to have comprehensive coverage on your vehicle to get it covered from things like natural disasters or theft. These costs will have to come out of pocket if they happen to you. However, depending on the worth of your car, comprehensive coverage may not be worth it for you. We can help you determine that.
Someone Borrowed Your Car and Crashed — So They Have to Pay
Unfortunately, no. The policy follows the car and the owner of said car, not the driver. This is why you should be particularly careful who you loan your car to. If you think you’re at high risk for this or other risk issues in life, the only thing that would really cover them is umbrella insurance. Otherwise, make sure you’re the primary user of the car and only let trustworthy people drive it.
Personal Insurance Covers Business Use of the Car
If you’re using your car for personal business use or to earn extra money by ridesharing, your personal plan may not cover something that happens when you’re using the car for these purposes. Look into a business insurance policy or getting rideshare insurance for your car. It’s the only way to make sure you’re covered in any event.
Personal Property in Your Car is Covered By Insurance
If you keep your laptop or other valuable things in your car, they aren’t covered by standard MAIF car insurance coverage. Theft coverage with comprehensive insurance is also only covering the theft of your car, not the items inside. Any personal items are traditionally covered by personal property insurance, like homeowner’s insurance or a renter’s insurance policy. A claim is also probably subject to a deductible.