Car Insurance Myths


10 Myths About Car Insurance

Did you know that 25% of drivers believe car insurance rates are determined in part by the color of the car? This is just one of many myths surrounding the calculation of car insurance premiums. Here are a few more...

Myth #1 - Women drivers pay more

Men are more likely to be involved in fatal accidents. Female drivers are more likely to have minor ones. In reality, car insurance premiums are actually set to reflect the applicant's record - not the statistics. Insurance rates do not differ by gender.

Myth #2 - Insurance protects rental cars

Comprehensive/collision car insurance may not cover the use of a rental car - even if you rent a car because your insured car was damaged or totaled. Most policies do not automatically cover your rental car, but you can add coverage at a very small price.

Myth #3 - Fancy cars increase your car insurance premium

Luxury cars have a higher risk of being broken into or stolen, so they may cost more to insure. However, more immediate influencers include the specific vehicle's loss history, costs to repair or restore such a vehicle, crime-risk in your neighborhood, and distance traveled daily.

Myth #4 - Insurance companies single out sports car drivers

Available studies list two Mercedes-Benz sedans, two Hummers, two Scions, and two Toyota models among the ten cars most likely to be ticketed. No Jaguars, Sebrings, Shelbys, but there is a Subaru Outback. So, any cost factoring will be based on the driver's record - not the car's.

Myth #5 - Car insurance covers property in my car

Typical insurance policies do not cover theft of cell phones, laptops, and other personal property. Wallets, briefcases, and glove compartments are not protected, nor are presents, car seats, or other items. They may be covered by your homeowner's insurance, but you would be smart to remove valuable objects when leaving the car.

Myth #6 - Car insurance covers towing

Most policies do not extend to towing insurance. Many insurance companies bundle such coverage with rental car coverage and other pluses in one rider package.

Myth #7 - There is no need for multiple policies

Your insurance policy does not extend to additional vehicles you might purchase, such as your spouse's or child's. It also does not extend to additional vehicles, such as RVs, ATVs, or motor scooters. The insurance applies only to the vehicle named in the policy application.

Myth #8 - Insurance pays off your loan

If your car is totaled, the insurance pays the actual cash value of the car before the accident net of the depreciation and deductible. You still owe the outstanding amount on the loan or lease. You can add gap insurance, and the slight added cost may give you some peace of mind.

Myth #9 - Comprehensive covers my car's performance

Car insurance has nothing to do with your car's mechanical problems or automotive performance. Comprehensive does pay for theft, vandalism, fire, flood, or hail. But, it does not cover engine or powertrain issues. Such incidents would be covered by product or extended warranties.

Myth #10 - Premiums are based on driving record alone

Keeping your nose clean, so to speak, without accidents or tickets, provides a good experience for car insurance underwriters. But, there other factors at play, such as the cost of repairs, labor, medical bills, and more.

The fact is -

Insurance premiums are determined by a complex number of factors, including the car value, driver's record, vehicle use, driver's age, neighborhood garaged, and choice of deductible. Get the facts from an insurance professional at Zeiler Insurance, not a vendor.

If you have questions or concerns on this issue, do not hesitate to call Zeiler Insurance and speak to one of our customer service representatives. As an independent agency, Zeiler Insurance prides itself with quality customer services for the people of the Chicago-land area and the rest of the Midwest. Customer or not, we can review your insurance and see if you are being protected appropriately for the right price.

Karli Zeiler


(708) 597-5900 x130 

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