When it comes to auto insurance, you may hear different types of information, depending on who you talk to. Unfortunately, there’s a lot of misinformation out there. It is important to be educated on what your policy does and does not cover. So, below we debunk a few common Massachusetts auto insurance myths.
A More Expensive Car Will Cost More to Insure
Although insurance rates do rely on the replacement cost of a vehicle, there are other factors that contribute to the rate. A more expensive car will not always be more expensive to insure. For instance, cars with high theft rates are more expensive to insurance since they are more likely to result in a claim. Thus, a high-theft rate car could cost more to insure than a more expensive car with a low theft rate.
If Someone Borrows My Car and Gets into an Accident, His/Her Insurance Policy Will Cover Damages
Insurance policies technically cover vehicles, not drivers. Therefore, if you lend your car to someone and they get into an accident, a claim will be filed against your insurance policy, not theirs. As a matter of fact, that driver could even sue your insurance company for personal injury coverage. So, it is important that you consider who you are lending your car to!
Auto Insurance Covers Personal Items Stolen From My Vehicle
Unfortunately, purses, laptops, and other personal items left in your vehicle are not covered by your auto insurance policy if they are stolen. They might be covered by your renter’s or homeowner’s insurance, but a deductible would apply. In most cases, the cost of those items would not exceed the deductible. Therefore, it’s best not to leave valuables in your car!
No-Fault Insurance Means an Accident Cannot Be My Fault
This term is understandably confusing. No-fault insurance does not mean that you won’t be held at fault for an accident. What it really does is allow your insurance to initially kick in regardless of who is at fault. This way, you are not waiting for a decision on fault before getting coverage. Once fault is determined, then that person’s insurance will be responsible for damages.
For example, let’s assume that you get into an accident. If you have collision coverage, your insurance company will pay for the repairs to your vehicle. If you are at fault, you will be responsible for your deductible. Insurance will still cover the rest. If you are not at fault, you will not pay a deductible. Your insurance company will cover repairs and then pursue the other driver’s insurance company for reimbursement.
My Insurance Company Can Choose to Cancel My Policy
This is not true, although the misinformation is understandable. Your insurance company can’t simply cancel your policy at any time and for no reason. Your policy covers a specific period of time, i.e. 6 months or one year. If you are on a monthly payment plan, your policy cannot be cancelled as long as you continue to make payments on time. However, your insurance company can opt not to renew your policy for another term. This may happen if you file too many claims or are otherwise considered too high a risk. This isn’t really a cancellation, but you would need to find a new insurance provider.
Summary of Massachusetts Auto Insurance Myths Debunked
So, there you have it. Those are 5 Massachusetts auto insurance myths debunked. It’s important to be an informed auto insurance consumer. Contact us for a free quote on auto insurance or to ask specific questions about what may or may not be covered by your auto insurance policy.