While all drivers using public roads are required to carry car insurance in the United States, your auto insurance coverage is something that you generally hope you'll never have to use. Unfortunately, there are still a lot of myths and misunderstandings floating around when it comes to car insurance. By having a better understanding of these myths (and the realities behind them), you can make better-informed decisions regarding your own coverage.
Myth 1: Some Accidents Aren't Worth Reporting
You may have been told that if you're in a minor accident or "fender bender," it's best not to exchange information with the other driver because reporting the accident to your insurance company will only result in increased premiums. In reality, you should always report accidents (no matter how minor) to your insurance agent right away. Otherwise, if your insurance company finds out about the accident and your lack of reporting, you could end up losing your coverage entirely.
Myth 2: You Don't Need More Than State-Minimum Coverage
Each state sets its own requirements when it comes to the minimum amount of car insurance coverage that drivers must carry. However, this doesn't mean that you'll never need more than your state's minimum coverage to be street legal. If your car is currently being financed (either through a car loan or a lease that you're making payments on), your lender may require you to carry coverage beyond the state minimum that includes comprehensive, collision, and higher amounts of personal liability/property damage protection.
Myth 3: There's Nothing You Can Do About a Speeding Ticket
While a speeding ticket can certainly affect your rates if you do nothing about it, the reality is that many first-time speeding offenses (and other moving violations) can be "forgiven" from your driving record. Check with your state's department of motor vehicles (or equivalent bureau) to see if you can take an approved and/or accredited driver safety course to have a violation removed from your record. If so, you could save your insurance rates from spiking.
Myth 4: Coverage Add-Ons Are a Waste of Money
Many car insurance companies offer add-ons like roadside assistance and rental car reimbursement at reasonable rates. Before you add these to your policy, just be sure to check with your credit card company and/or dealership to make sure that you don't already have these services in place. If not, then getting them through your insurance can give you some added protection and peace of mind.
For additional information, reach out to a company like LA Insurance.