Most types of insurance are hard to understand because there are many ins-and-outs, and auto insurance is no exception. From the type of coverage you need for your vehicle to how much, there are many things to consider when choosing a policy. Once you have a policy in place, there’s even more to decide, including premium rates and deductibles. To help you understand this type of coverage, here are some of the most common myths about car insurance, debunked.

4 Common Misconceptions About Auto Insurance

1. Only Your Driving Record Affects Insurance Premiums

Dozens of factors contribute to the amount you pay for auto insurance. Your driving record is one of them, but so is the type and age of the car, your age, gender, marital status, and even your credit rating. If you have bad credit, prepare to pay more to insure your vehicle. However, if your car is loaded with safety features and anti-theft devices, you may qualify for discounts on your insurance premium.

2. Repair Parts Are Always New Parts

You may think the parts used to repair your car after an accident are all new, but many are likely used or refurbished. This saves your insurer money when paying for repairs and helps keep your auto insurance rates reasonably priced. Don't worry, though; all parts used for repairs are of good quality and durability.

3.  Insurers Won't Know If You Lie

Car insurance companies hire whole departments filled with investigators whose job it is to sniff out fraud. If you lie about what happened to your vehicle, not only may your insurer drop you, but they could even prosecute you.

4. Only At-Fault Drivers Must Pay the Deductible

Unfortunately, deductibles are a fact of life whether you caused the accident or not. If you’re risk-averse and don’t want to be stuck with a high deductible amount in the event of an accident, you can have your agent reduce the amount. However, realize that lower deductibles mean your insurer is accepting more risk if your car is damaged, meaning you’ll pay higher monthly premiums. 

The caveats of auto insurance can be confusing, but the experienced agents at Wilmoth Insurance Agency will make sure you find the best coverage for your situation. Based in Cookeville, TN, they’ve been serving Putnam County residents and businesses since 1939. They also specialize in home, life, motorcycle, and renters insurance, ensuring you can get all the coverage you need in one stop. Visit their website to see location details or call (931) 526-6181 to request a car insurance quote today.