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Dispelling 3 Widespread Misconceptions About Auto Insurance

Dispelling 3 Widespread Misconceptions About Auto Insurance

If you're reading this, you're probably looking for information on auto insurance. In this article, we'll discuss three common misconceptions about auto insurance that need to be dispelled. These misconceptions can prevent people from making informed decisions about their insurance coverage. So, let's get started!

Misconception #1: Minimum Coverage is Enough

Many drivers believe that purchasing the minimum amount of auto insurance required by law is enough to protect them in the event of an accident. This is not necessarily true. Minimum coverage may not be enough to cover the cost of damages or injuries sustained in an accident.

For example, let's say you're involved in an accident that causes $50,000 in damages. If you only have the minimum coverage required by law, which is typically around $20,000, you'll be responsible for paying the remaining $30,000 out of pocket. That's a lot of money!

It's important to consider your individual needs and the level of risk you're comfortable with when choosing an insurance policy. Don't just opt for the cheapest option available.

Misconception #2: Comprehensive Coverage is Too Expensive

Some people avoid purchasing comprehensive coverage because they believe it's too expensive. However, comprehensive coverage can be a worthwhile investment, especially if you have a newer or more expensive vehicle.

Comprehensive coverage can protect you from a variety of non-collision related incidents, such as theft, vandalism, and natural disasters. While it may cost more than just liability coverage, the added protection can save you money in the long run.

Misconception #3: Your Credit Score Doesn't Affect Your Insurance Rates

Contrary to popular belief, your credit score can have an impact on your auto insurance rates. Insurance companies use credit scores as a way to assess risk, with the assumption being that people with lower credit scores are more likely to file insurance claims.

If you have a low credit score, you may be paying more for auto insurance than someone with a higher score. To improve your credit score, focus on paying bills on time, reducing your debt, and checking your credit report for errors.


Auto insurance can be confusing, but it's important to understand the facts so you can make informed decisions about your coverage. Don't fall victim to these common misconceptions.

Remember, minimum coverage may not be enough to protect you in the event of an accident, comprehensive coverage can be a worthwhile investment, and your credit score can affect your insurance rates. Take the time to research your options and choose the coverage that's right for you.