Debunking Common Auto Insurance Myths

The auto insurance industry can be confusing, and a lot of misinformation gets passed around. Not only can this make it difficult to understand your insurance coverage, but it can also end up costing you money.

These are five of the biggest myths and misconceptions held by Las Vegas, Nevada drivers.

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Myth #1: State Minimum Coverage Is Enough

In most cases, state minimum coverage isn’t nearly enough to cover the damages that could result from a serious accident.

Read More: Changes to Nevada’s Auto Insurance Minimum Coverage Requirements

 

Myth #2: Your Credit Score Doesn’t Affect Your Rate

Your auto insurance provider weighs numerous factors, including your credit score, to assess your driving risk and to calculate your premium. Your insurance quote will most likely do a “soft check” of your credit score which won’t affect your credit. But it is enough information for the insurance company to add to their list of items to look at while determining your auto rate and risk factor.

Read More: Why Did My Auto Insurance Company Check My Credit?

 

Myth #3: Older Drivers Are Charged Higher Premiums

Because of the discounts that are available to experienced drivers, mature drivers often pay less for their coverage. However, as we do get older and older, premiums can potentially rise.

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Myth #4: Driving for a Rideshare Company

Your Personal Insurance Policy Is Enough

If your vehicle is used for commercial purposes, your personal insurance policy may not cover an accident that happens while you’re on the clock. Some Rideshare companies do offer coverage for their drivers. It is SO IMPORTANT to confirm what coverage, if any, they offer. Ask about when the coverage starts and stops during your on-the-clock time. You may need “Rideshare” coverage for your personal policy. Call your auto agent and your Rideshare company to verify what you need, what you have.

Read More: How Much Auto Insurance Coverage Do You Need?​

 

Myth #5: The Color of Your Car Affects Your Premium

Your vehicle’s make, model, year and options affect your premium, along with many other factors; its color does not affect your premium.​

 

Understanding Your Auto Insurance Policy with Nevada Insurance Enrollment

Don’t let these common misconceptions about auto insurance keep you from getting the best coverage for your lifestyle. At Nevada Insurance Enrollment, our auto insurance agents are here to help you understand your policy and purchase auto insurance with confidence.

What is Umbrella Insurance?

What is Umbrella Insurance?

Umbrella insurance is a special type of insurance coverage that protects you from lawsuits and claims that go beyond the limits or scope of your other liability insurance. It protects your assets and your financial outlook by extending the liability coverage on your homeowners, renters, auto or boat insurance when your limits are exhausted.

What is Umbrella Insurance?

Shopping Around for Auto Insurance Is a Good Thing

If you’re nearing the end of your policy term and you’re planning to auto-renew rather than go through the process again, you may end up paying too much for auto insurance or worse, find yourself underinsured.

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