There seems to be plenty of myths floating around regarding auto insurance coverage. Rather than assume that these misconceptions are true, New York Car Insurance would like you to take a moment to familiarize yourself with the facts. Being an informed consumer may very well save you some money the next time you need to obtain coverage, file a claim or make changes to your auto insurance policy.

Myth: New vehicles are stolen more frequently than older ones.

Fact:  Actually, the complete opposite is true. Studies have illustrated that older cars are more likely to be targeted by thieves as they are generally more accessible and are more profitable when sold off part by part.

Myth: If I purchased the minimum amount of insurance coverage as required by my state, I am covered if I experience such circumstances as theft, vandalism and damage.

 

Fact:  Purchasing a policy that provides the minimum amount of coverage as required by law will leave you out in the cold should your car ever be stolen, vandalized or otherwise damaged by things like fire and hail. The only way to make sure you are completely covered should you experience those situations is to include both comprehensive and collision coverage with your policy.

Myth:  My new york car insurance will cover the outstanding balance on my loan or lease should my vehicle be totaled.

Fact:  If you vehicle is totaled, your insurance company would only payout the estimated cash value of your car, nothing more. Purchasing gap insurance coverage would ensure that should your car be rendered useless due to an accident, you would not be responsible for the balance of the loan or lease.

Myth: If I am in need of a rental car, my insurance has got me covered.

Fact:  You must specifically add rental car reimbursement coverage on your auto insurance policy to avoid related out of pocket costs.

Myth:  Individuals who own sports cars always pay more in premiums and are the most likely to be ticketed for traffic violations

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Fact:  Generally, it is more expensive to insure a sports car, but depending on your age, your driving record and risk level, it’s not an improbability that you will pay more in premiums. Furthermore, studies show that SUV drivers (specifically Hummer owners) are most likely to be ticketed.

Tags: New York Auto Insurance