Car insurance

12 Auto Insurance Myths You Should Stop Believing

Purchasing auto insurance for the first time, renewing your policy, or adjusting your preexisting policy can be stressful and a little scary, especially if you’re not well-versed in the world of insurance. You’ve probably even heard of many so-called auto insurance “facts” that might have made you nervous about getting a policy for one reason or another.

That’s why Madison Mutual is here to help clear up the fiction and give you the straight facts about auto insurance. Here are the top 12 auto insurance myths that we have debunked for you! See them below!

The color of my car matters – Red cars might be what many drivers want in their garages, but it is certainly no real interest to the insurance company. We are much more interested in your car’s make and model, its year, body, style, and engine size than its color. What matters much more than the color of your car (and can help or hurt in determining the cost) is your behavior on the road. Moving violations such as speeding or reckless driving that result in “points” can definitely affect the cost of your premiums, no matter what color your car is.

My ancient car won’t be a target for theft – Your car might not be from the 21st century, but it can mostly certainly be a target for theft! According to the National Insurance Crime Bureau report, car thieves preferred older models because they were easier to steal. The report also suggests that the thieves’ preference varies from state to state. For instance, thieves in Texas tend to steal trucks while bandits in California tend to pilfer Hondas, Toyotas, and other imported models.

My credit score won’t affect my insurance rates – Many insurance agents take a lot of factors into consideration when determining your premium rates. Your credit score is seen as an indication of how you handle your financial affairs, so many companies will look at your number if you’re interested in purchasing, renewing, or changing your policy.

If my car is stolen, vandalized, or damaged by hail, wind, fire, or flood, I’m covered – It isn’t entirely a given that your car will be covered in the event of theft, vandalizing, or damage caused by natural disaster. You may have to purchase comprehensive and collision coverage to make sure that you’re totally covered. Talk to us to find out what would best suit you and your vehicle!

My personal property inside my car is covered – We wouldn’t recommend leaving your iPod, laptop, or those expensive golf clubs in your car. If your personal property inside your car happens to be ruined, damaged, or stolen from your car, you won’t be covered; however, you may file a claim through your homeowner’s insurance policy!

If my friend borrows my car, he’s responsible if there’s an accident – Your auto insurance policy will apply to the car, not the driver. If your friend borrows your car and is involved in an accident, you will ultimately be responsible for the accident and for any damages that occur as well. Think twice before letting your friends borrow your car!

Sports car drivers have to pay more on insurance – You might think that drivers of sports cars will have to pay up more in the insurance department because they probably have a glove box full of unpaid violation tickets, but that isn’t true. In fact, according to a study published in 2009 by Quality Planning, drivers of the Hummer H2/H3 go the most violations and – more than likely – higher premium rates. Others that made the list were drivers of the Scion xB multipurpose wagon and the Subaru Outback station wagon. These cars are definitely not hot sports cars! Again, it’s not the type of car that matters; it’s your behavior behind the wheel that counts.

I have no-fault insurance. That means it’s never my fault! While no-fault insurance varies from state to state, it generally means that that you and the other party will be covered for immediate expenses like medical attention or lost wages while the insurance companies will figure out who will pay for the accident. You may, however, still be liable for repairs and other damages if the insurance companies ultimately decide that the accident was your fault, so beware.

One speeding ticket will make my rates skyrocket – This is true sometimes, but in many cases, you have to get two tickets before your rates go up. Remember, your driving history, the length of time you’ve been insured with us, and how fast you were traveling when you were cited can all affect whether your rates increase or not. Additionally, a speeding ticket may not be the only reason your rate increases; several factors are considered when your policy is being reviewed.

My rates will be higher if I’m a smoker – This isn’t true for car insurance. In fact, we won’t even ask you if you’re a smoker or not. Really, though, you should consider trying to quit if you do smoke so that you won’t have to pay so much for your health insurance and so you may live a longer, more fulfilling life!

I just need the bare minimum amount of car insurance to get by – Many states have minimum car insurance requirements, but the minimum amount of required insurance that you receive may not cover all of your costs! For instance, if you happen to cause an accident that results in a lawsuit and your insurance limits don’t cover all of the damages, your assets could be legally pursued. Talk with us to figure out what coverage you really need!

Cheaper cars cost less to insure – Actually, it all depends. If your cheaper car sports a larger engine, weights a lot, or is an unusual model, it could cost more to insure than a more expensive small car. That being said, if you have a cheaper car, you should pay less for comprehensive coverage, which covers damage caused by hail, fire, animal accidents, or vandalism.

If you’re looking for a great auto insurance policy that won’t break the bank, don’t choose just any insurance provider. Go with the best in town – Madison Mutual! We have been covering and protecting people for nearly 100 years, and we will make sure that you will be properly protected. After all, anything can happen. Call us today at 1-800-766-MMIC or visit us online at to get started today!