What are some of the common myths about auto insurance?

Question:

What are some of the common myths about auto insurance?

Answer:

  1. If I lend my car to a friend, their insurance covers them in an accident.

False. If you loan your vehicle to a friend, your auto insurance is the policy that covers them in an accident.

  1. My personal auto insurance covers both my personal and business use.

False. Some personal auto insurance policies allow for limited business use, but it must be added to the policy. However, if you use a vehicle mostly for work, then a commercial auto policy will be required for you to be covered.

  1. My credit score has no effect on my auto insurance.

False. Most companies used credit scores in determining rates. Lower credit scores will not prevent you from getting insurance, but you could potentially pay a higher rate than someone with a higher credit score.