5 Myths About Car Insurance

You may think you know everything you need to know about insuring your car. You might be wrong.



   My friend borrowed my car, so he's responsible for damage.
If you give someone permission to drive your car and that person crashes, it will be your insurance -- not your friend's policy -- that covers the damage.

   A more expensive car costs more to insure.
Car insurance companies look at the "loss history" of the type of car you drive -- meaning how many claims they've paid on that model -- along with how much it might cost to repair or replace your car, not its sale price, when determining how much to charge you for collision and comprehensive coverage.

   I got a ticket, so my car insurance rates will skyrocket.
A ticket doesn't automatically mean an increase in rates,If the ticket was minor and you have an otherwise clean record, your premium may not increase.

   No-fault insurance means it's not my fault.
No-fault car insurance varies by state, but it usually requires your insurance company to pay medical expenses and lost wages for injuries due to a car accident, regardless of who is at fault.

   The color of my car affects my insurance rate.
Auto insurance companies set rates based on the safety features of a vehicle and how much it costs to repair or replace the vehicle, along with other factors about the driver. The color of the car doesn't factor into the premium.