Auto insurance is one of the most common and familiar types of insurance coverage in the U.S. Nevertheless, misconceptions about exactly how it works and its legal requirements continue to propagate. This can lead to people making decisions that either waste money or result in inadequate coverage. Learn the truth behind a few common myths about car insurance so you can make an informed choice going forward.

Correcting Misunderstandings About Auto Insurance

1. You Don't Need Coverage Unless You Have a Car Loan

It is true that if you have an outstanding auto loan, your insurance company will likely require you to insure the vehicle to protect their investment. However, that is not the only reason to buy coverage. New York State requires all drivers who operate on public roads to have at least $25,000/$50,000 of bodily injury liability, $50,000/$100,000 of accidental death liability, and $10,000 of property damage liability coverage. Failure to comply can result in a fine of $1,500, loss of driving privileges, a $750 reinstatement fee, and even jail time.

2. Car Insurance Follows the Driver

Some people believe that if they loan their car to a friend, the friend’s insurance covers any accidents. This is not entirely true. Their policy, if they have one, covers them for any liability they face if they cause an accident.

However, your policy covers damage to your vehicle. Note that your coverage and premiums were tailored to your car's age, make, and model, just as your friend's policy was tailored to their car. If they have an older, less valuable vehicle, their policy wouldn't fully cover losses on a borrowed car that is newer or costlier.

3. All You Need Is the Legal Minimum

Many drivers purchase the minimum amount of insurance required to comply with the law. However, the total costs of insurance can exceed these legal minimums. This basic type of coverage also does not cover incidents like theft, vandalism, or weather events. For full protection, you need comprehensive coverage.

For help finding the right coverage for you, contact the auto insurance experts at Truax Insurance in Ogdensburg, NY. They have served St. Lawrence County since their founding in 1932. They specialize in auto, home, business, health, and life insurance and are renowned for their attentive customer care. Visit their website to learn more about your coverage options or call (315) 393-3805 to request an insurance quote.