Auto insurance is something you don't want to be without when you're behind the wheel. Unfortunately, there's a lot of misinformation out there when it comes to auto insurance coverage that could put you at risk if you're not careful. By being aware of some of the most commonly held auto insurance myths (and the truths behind them), you can be better informed and make the right decisions regarding your own coverage needs. From there, you can get behind the wheel with confidence!
Myth 1: State Minimum Coverage is Fine
State minimum coverage is the bare minimum auto insurance that your state requires all drivers to carry, and it typically includes a specific amount of personal injury protection, property damage coverage, and coverage against uninsured and under-insured motorists. It also tends to be the cheapest coverage you can buy, which is great if you're looking to save money.
However, there are some situations where carrying the state minimum auto insurance is not okay, such as when you're still making payments on your vehicle (whether you leased or bought it). In these cases, your lender requires you to carry full-coverage insurance that includes comprehensive and collision protection, so make sure you know if this is something you need.
Myth 2: It's Not a Big Deal if Coverage Lapses
Keeping a valid auto insurance policy at all times is a must, even if you're not driving your vehicle for a certain period of time due to a mechanical breakdown, long vacation, or any other reason. If your coverage lapses, this will likely be reported to your state's bureau of motor vehicles (or similar authority). Lapses in insurance coverage not only leave you vulnerable in the event of an accident, but can make it more difficult for you to buy auto insurance later on.
Myth 3: Filing a Claim Will Raise Insurance Rates
If you repeatedly file claims, yes, your insurance agent will probably begin to consider you a high-risk driver—and your rates could adjust accordingly. In most cases, however, your rates shouldn't increase by filing just one or two claims here and there. With this in mind, you should never hesitate to file a claim with your insurance company for a covered incident. Your agent is there to help you, and your coverage is in place for these exact situations.
Don't fall for these common auto insurance myths! Keep this information in mind to make a more confident choice regarding your own coverage.