Most motorists know that auto insurance will provide financial and legal protection in the event of a car accident. But beyond this general understanding, car insurance can be fairly complicated. With several coverage options and complex claims, drivers may not always know what’s right for them. In fact, many will believe common misconceptions surrounding the topic and end up with insufficient coverage. To help you better understand this essential protection, here are five common myths about car insurance and the truths behind them.

5 Myths About Auto Insurance

1. Minimum Coverage Is All You Need

All Ohio drivers are legally required to have injury liability insurance of $25,000 per person up to $50,000 total per accident. This minimum coverage should also cover property damage up to $25,000. But while you may be legally compliant with this type of policy, it won’t help cover other risks you may be concerned about.

For example, if you’re worried about replacing or repairing your vehicle after an accident, you should invest in collision coverage. Comprehensive insurance, on the other hand, is designed to cover damage that occurs off the road—such as that caused by extreme weather, burglary, or fire.   

2. Personal Plans Apply to Business Uses

As the gig economy becomes more widespread, more and more people are using their cars to support business affairs—such as ridesharing or delivery. However, personal auto insurance won’t necessarily cover incidents that are associated with work. To be protected, you must also have commercial auto coverage.  

3. Getting Older Increases Premiums

Although aging can present unique driving challenges, getting older doesn’t mean having to experience higher rates. If you’ve remained a good driver with a clean record, your rate shouldn’t increase. In fact, many providers will offer a senior discount that can help you save.

4. Friends Are Covered By Their Policies

If you let a friend borrow your car, don’t assume that any accident they’re involved with will be covered by their policy. For them to stay protected, their name will typically need to be listed on your plan.

5. Claims Always Increase Rates

Drivers will often avoid reporting incidents to their insurance company because they fear it will increase their rates. However, filing a claim may not always boost the premium. Instead, your provider will consider a variety of factors to determine your future rates—such as your driving history, who was at fault, and your specific coverage terms.

When it comes to staying safe on the road, knowledge is power. That’s why Somers Agency is committed to providing extensive insurance services to the Lorain County, OH region. Through an individualized approach, these friendly agents will introduce you to different auto insurance plans that fit both your risks and your budget. Backed with deep industry knowledge, this team can also clear up any areas of confusion. To learn more about their products, visit this agency online. For a custom car insurance quote, call (440) 324-3447.