While many people know that auto insurance is crucial, you might have a few common misconceptions about this coverage. Clearing up these misunderstandings is essential, so you know that the coverage suits your needs. Below are a few of these errors in more detail.

What’s the Truth About Common Auto Insurance Myths?

1. Minimum Coverage Is Sufficient

All motorists must have minimum insurance coverage as stipulated by state law. However, this coverage may be insufficient for protecting you in all situations, especially when multiple vehicles are involved. Also, minimum collision coverage only protects you from liability; repairs needed for your car are not included.

2. Certain Colors Are More Expensive

This myth has some truth to it; studies have shown that specific car colors have a higher risk of accidents. The reasons behind this phenomenon are not concrete, and insurance agencies have more reliable criteria they use to calculate premiums. This includes safety features, the vehicle you buy, and your driving history. 

3. You Can Cancel at Any Time

Your insurance agency can cancel the policy at will, but it rarely occurs for no reason or without warning. If your plan faces cancelation, an agent will contact you explaining why and provide a timeframe for you to get other coverage. This usually only occurs when there are grounds to do so, such as a fraudulent claim.

4. Personal Property Is Covered

Your insurance can cover personal belongings in your vehicle that are damaged by theft, vandalism, or a collision. However, auto insurance does not cover them; instead, your home policy will. Research your home insurance to determine how and when your items are protected. 

With more than four decades of service, Taake Insurance Agency LTD will clear up any confusion you have about auto insurance. This trusted Columbia, IL, agency provides information on minimum insurance coverage, as well as supplemental policies to enhance your protection. They work with many insurance carriers, so you can rest assured that the coverage you choose is quality. Schedule a consultation by calling (618) 281-7656. Visit the website for more information about their services.