Top Auto Insurance Myths

Auto insurance is one of those things that many people do not understand even if they think they do. In fact, there are many myths that people believe to be true. To help you distinguish between these myths, Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, has complied a list of some of the most common ones.

Red Cars Cost More to Insure

Many people think that red cars are more expensive for auto insurance policies but the color of the car is not taken into account. The factors that are considered include the make, model, age, engine size, and body style of the car as well as the age, driving record, and credit history of the driver.

Your Car Will Be Paid For If Totaled

Many people think that if their car is totaled in an accident that the insurance policy will pay for it in full. However, this is not the case. Most policies will actually pay for the fair market value of the car. The fair market value takes into account the original cost of the car and then deducts depreciation. In many cases, this is not enough to pay for the entire balance of the vehicle and as the driver, you will be left paying for the remainder.

Your Rates Increase As You Age

This myth could not be further from the truth. As people get older, they tend to get cheaper rates because they are viewed as more mature drivers by the insurance companies. You may even be able to get additional discounts after age 55.

If you are looking for a great auto insurance policy, be sure to reach out to Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, for a free quote and policy evaluation.