Because it is required by law in nearly every state, auto insurance is among the most common types of coverage. However, misconceptions about this subject are extremely common. To dispel some of this misinformation, below are some of the most prevalent myths about car insurance — and the truth.

3 Misconceptions About Auto Insurance

1. You Only Need Minimum Coverage

Because Connecticut law requires drivers to maintain $40,000 of bodily injury liability, $20,000 of property damage liability, and $40,000 uninsured/underinsured motorist coverage, many drivers feel that this coverage is sufficient. However, it does not protect your vehicle. For that, you need collision or comprehensive coverage. Moreover, medical costs for collision injuries can run hundreds of thousands of dollars. Minimum coverage limits would leave you liable for most of that out of your own pocket. To better protect yourself, consider upping your auto insurance coverage well beyond the legal minimums.

2. Insurance Follows the Driver

In fact, insurance typically follows the vehicle, not the driver. If you loan your expensive luxury car to a friend who has only basic coverage on a 20-year-old car, the comprehension and collision coverage you purchased for your vehicle will apply if your friend gets into an accident while driving your car. It could also lead to a rate increase in your own insurance. However, if your friend isn’t at fault for an accident, you can most likely file a claim with the insurance claim of the party at fault.

3. Red Cars Are More Expensive to Insure

Car color has nothing to do with auto insurance costs. However, the make, model, and age of the vehicle affect prices, as do your driving record, credit history, the number of miles per year you drive, and your personal characteristics. Men, single individuals, and younger drivers tend to be riskier drivers and therefore usually pay more for coverage.

To speak with a friendly, helpful agent about affordable auto insurance coverage, contact Action Auto Insurance Agency in New London, CT. They are an independent agency that represents a large network of respected, national brands, including AIG, Foremost, Progressive, MetLife, and Mutual of Omaha. They serve clients in New London, Stonington, Lyme, Griswold and lower Windham counties and specialize in auto, home, business, renters, boat and motorcycle insurance. To visit their office, check out their website for a map and business hours. Otherwise, call (860) 444-7224 to request a car insurance quote.