Answers to those age-old auto insurance myths
Comprehensive coverage is the same as full coverage
Myth busted. While the word "comprehensive" might imply you have everything you need, the coverage only protects you from things out of your control like theft and vandalism. It will not cover you if your vehicle collides with another car or object.
Cheap cars cost less to insure
Myth busted. If your cheaper car has a large engine, weighs a lot, or is an unusual model, it might cost more to insure than a more expensive small car. However, if you have a cheaper car, you will usually pay less for comprehensive coverage.
Personal auto insurance covers my vehicle for business use
Myth busted. Although you're typically covered by your personal policy for business errands, a commercial auto policy will be required if you're using your vehicle for delivery services or transporting passengers for a fee. You may also need commercial auto insurance for certain vehicle types.
Insurance companies pull credit for quotes and then my credit takes a hit
Myth confirmed, then busted. Yes, insurance companies may view your credit report to provide the most accurate quote. However, it is a soft inquiry only, meaning your credit score will not be affected in any way. You could quote hundreds of insurance companies in one day, and your score will never change.
See exactly how your age impacts your price and by how much.
My rate will decrease when I turn 25
Myth confirmed. You are likely to see a decrease in price when you turn 25, assuming all other factors remain the same. At Progressive, the biggest rate drops come at 19 and 25. As drivers gain more experience, they're less likely to be in an accident. But, these savings can easily be cancelled out by a poor driving record or other factors.
Other drivers' actions could change my rate
Myth confirmed. Your location plays an important part in calculating your rate. So if there is a dramatic increase in traffic or accidents in your ZIP code, that may lead to a massive number of claims—which means more risk for your insurer. Insurance companies may be forced to adjust rates in those areas. Of course, it works both ways. If you live in a ZIP code light on traffic and auto claims, your rate may decrease because of less risk.
Accidents that were not my fault could raise my insurance rate
Myth confirmed in some states. This varies by state. In many states, you won't see an increase at all. But in other states, your company could increase your rate—so it depends on your state and your insurance company.
Insurance companies have compiled data showing that some drivers have a propensity for accidents that aren't their fault. This kind of risk means a higher rate.
I'm covered if I'm driving a rental car
Myth confirmed. Your everyday insurance covers rental cars. You're covered the same way as if you were driving your regular ride. If you have comprehensive and collision coverages on your existing auto policy, they will carry over to your rental car and you won't need to purchase additional insurance. The only exception would be if you're renting a specialty car—in that case, check in advance with your insurance company to make sure you're covered.
See more on rental car insurance.
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