Myths About Auto Insurance

Auto insurance is something that many people think they understand but they may not have a full grasp on it. This is because there are many myths that people hear about it that they think are true. According to Insurance Solutions Inc. serving Cullman, AL, these are some of the top ones you may hear and the truths behind them:

  • Your Rates Increase As You Get Older. In fact, the opposite is true. As you get older, your rates should decrease. This is because many insurance companies see this as a sign of driving maturity and you may even be able to get an additional discount if you are 55 years or older.
  • If You Total Your Car, Insurance Will Pay It Off. This is a common misconception that can really get you into trouble at a later date. Auto insurance will pay for the fair market value of your vehicle which means that the original cost and any depreciation is taken into account when payouts are being determined. In a lot of cases, this amount is less than what you may owe on a vehicle and you will have to pay the difference.
  • Red Cars Cost More To Insure. This is a very common myth and generally the color of the car has no direct impact on the insurance rates. Rates are created based on the make, model, age, body type, engine size, age of the driver, the driving record of the driver, and their credit history.

In Cullman, AL, you need to have auto insurance if you are going to be driving your vehicle. To get a quote for auto insurance, be sure to reach out to Insurance Solutions Inc. They will work with you to help find the right policy and at the right price for your budget.