It’s no secret that car insurance can be a pain to deal with. It can be expensive, and the process of shopping for and comparing rates can be confusing and time-consuming.
But if there’s one thing that’s even worse than figuring out car insurance, it’s dealing with false information about car insurance. There are all sorts of myths and misconceptions about car insurance out there, and if you’re not careful, you could wind up paying a lot more than you need to.
Worried about being taken for a ride (pun intended)? Here are six of the most common myths about auto insurance in Utah, debunked.
1. My Car Insurance Rates Will Rise After a Claim.
This is one of the most common myths about car insurance, and it’s also one of the most persistent. The truth is, it all depends on the circumstances of the claim and your insurance company’s policies.
Before signing on your coverage, talk to your provider about how they handle claims and rate increases. This way, you’ll know what to expect if you ever do have to file a claim.
2. My Car Is Automatically Covered by Insurance When Damaged by Mother Nature, Vandalized or Stolen.
Again, this all depends on your insurance company and your specific policy. Some comprehensive policies will cover these types of damages, while others will not. And even if your policy does cover these things, there may be certain conditions or limitations that apply.
As with anything else, it’s always best to check with your provider before assuming anything.
3. I Only Need the Minimum Amount of Car Insurance Required by Law.
This is a risky proposition. The minimum amount of auto insurance in Utah required by law is $25,000 for bodily injury per person, $65,000 for bodily injury per accident, and $15,000 for property damage per accident.
While this may seem like enough to protect you financially if you’re in an accident, it might not cut it if you’re involved in a serious accident. The costs of medical care and car repairs can quickly exceed these limits and if they do, you’ll be on the hook for the rest.
It’s always better to err on the side of caution and get more coverage than you think you need. You never know when you might need it.
4. Auto Insurance Is More Expensive For Men.
This is another myth that just won’t die. And while it may have been true at one point, it’s no longer the case. In most states, including Utah, insurers are not allowed to use gender as a factor in determining rates.
5. If Someone Borrows Your Car, They Are Responsible for the Insurance.
This one is a little bit tricky. If someone borrows your car and they are involved in an accident, your insurance will typically be the one that pays out. However, if that person is found to be at fault, your rates could go up as a result.
It’s always best to check with your provider before loaning out your car to someone to make sure you understand the risks involved.
6. My Personal Credit Score Doesn’t Factor into My Car Insurance Rates.
Insurance companies use what’s called your “insurance score” to help determine your rates. This score is based on things like the vehicle’s make and model, your credit history, and claims history. So if you have a good credit score, you’re more likely to get a lower rate.
So, will you be shopping for a new car insurance policy now? Or are you confident that your current policy has you covered? Regardless, we hope this article helped clear up some of the myths about auto insurance in Utah.
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