A great deal of false information about auto insurance has perpetuated over the years, which can make it confusing to know the truth about your policy. If you believe misconceptions about your coverage, it can lead you to buy a plan that isn't right for you. The team at Wilmoth Insurance Agency helps residents and businesses in Cookeville, TN, protect their vehicles, and they debunk a few common myths they hear about car insurance.

3 Auto Insurance Misconceptions

1. The Color of Your Car Matters

Many people falsely believe the color of their car determines their insurance rates. However, premiums are determined by your vehicle's make, model, and engine size. Other factors that go into your rate calculations are your credit history, driving record, and the sticker price of your car.

2. You Can Keep Your Insurance Rates Low if You Don't Report an Accident

You may have read that if you get into an accident, you should keep your insurance company from finding out about it so your rates won't increase. However, if the other driver files an insurance claim for damages or injuries, your provider will increase your premiums. Also, if you receive a ticket resulting from the crash, your insurance company can find out about it and further raise your rates.

3. My Friend Borrowed My Car, So If They Gets Into an Accident, They’re Responsible for Damages

If you let someone borrow your car and it ends up in an accident, your auto insurance policy covers the damages. Personal auto insurance policies cover the vehicle, not the driver. The laws are different in every state, so make sure you understand them before anyone else drives your car.

If you have questions about your auto insurance plan or you’re interested in a new policy, contact the experienced team at Wilmoth Insurance Agency. Since 1939, they have provided customers with a variety of affordable options to protect their important assets. Give them a call at (931) 526­-6181 to speak with an agent about your car insurance needs. Visit their website to learn more about their plans.