Auto insurance is something most drivers have, but few take the time to fully understand. While you may know the basics—like needing coverage to drive legally—there are plenty of lesser-known facts that could save you money and help you make smarter insurance decisions. Here are a few surprising things about auto insurance you might not know!
Your Credit Score Can Affect Your Insurance Rates
Many insurance companies use your credit score (where legally allowed) as a factor in determining your premium. A higher credit score often means lower rates because insurers see you as less risky. If you want to save on auto insurance, maintaining good credit can help!
The Color of Your Car Doesn't Impact Your Premium
A common myth is that red cars cost more to insure. In reality, insurers don’t factor in color when determining rates. What does matter? Your car’s make, model, age, safety features, and how expensive it is to repair or replace.
You Might Be Covered for Rental Cars (Without Extra Insurance)
Before paying extra for rental car coverage, check your existing auto policy! Many policies already include rental car coverage for accidents, and some credit cards offer additional protection when you book a rental.
Where You Park Your Car Can Affect Your Rate
If you park in a garage or secure location, you may get a lower rate than if your car is regularly parked on the street. Insurers consider where you store your car overnight when determining risk.
Personal Auto Insurance Doesn’t Cover Business Use
If you use your personal vehicle for work-related activities (like making deliveries or driving clients), your standard policy may not cover you in case of an accident. You may need commercial auto insurance or a policy add-on to stay fully protected.
A Lapse in Coverage Can Increase Your Premiums
Going even a few days without auto insurance can lead to higher premiums when you reinstate your coverage. Insurance companies may see gaps in coverage as a red flag, so it’s best to maintain continuous insurance whenever possible.
Final Thoughts
Auto insurance is full of details that many drivers overlook. Understanding these little-known facts can help you save money and ensure you have the right protection on the road. If you have questions about your auto policy or want to explore better coverage options, ABC Insurance Group is here to help—reach out today for a free review!
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