There are a lot of misconceptions about auto insurance out there. Some people think certain colors of cars cost more to insure, for example. Here we outline the top 5 most common car insurance myths.

Myth #1: Your Personal Auto Insurance covers your car for business use.

Your personal car insurance coverage will not cover your personal vehicle used for business. If you are self-employed or own your own business, you need to purchase business auto insurance for your vehicle in order to be covered for accidents or other issues that occur when using your vehicle for work. Even if you work as a pizza delivery driver, you will probably need to upgrade your insurance coverage because usually your employer will not cover this.

Myth #2: Soldiers Pay More for Car Insurance

The exact opposite is true. Most, if not all auto insurance providers offer discounts for active duty military members, and most provide discounts for retired military members and their families.

Myth #3: Red Cars Cost More to Insure Because They Get Pulled Over More Often

This is a common myth but it is not true. Police officers do not pull over cars because of their color, and auto insurance carriers do not charge more based on the color of your car. What car insurance companies do care about is what type of vehicle you own; including the make, model, sticker price, engine size and year.

Myth #4: Older Drivers Pay More for Car Insurance

Older drivers actually often pay less for car insurance. Older drivers tend to have more driving experience, which makes them safer drivers. Older drivers also tend to drive less, and one of the factors that determine your auto insurance premium is how many miles you drive a year.

Myth #5: Your Insurance Policy Covers Any Damage to Your Car

This is not true. What damage your insurance policy covers depends on the type of policy you have. A Liability only policy (the state minimum insurance requirement) only covers damages to another person’s property or injury of another person when you are at fault for an accident. If you want to cover your vehicle in the event that you are at fault for an accident you will need comprehensive and collision coverage. Usually if you are purchasing a brand new vehicle from a dealer they will require full coverage. If you own a old vehicle that is not worth much it may be more cost effective to drop the collision coverage. When deciding what type of auto insurance you need it is best to talk to your insurance broker to find a policy that fits your needs and your budget.

Do you need car insurance in Missouri? If so contact us today at (314) 475-5637 for a FREE auto insurance quote!