By The Lambert Agency | Austin, Texas
When it comes to purchasing auto insurance, misinformation and straight up incorrect information is easily spread. Whether it’s social media advice from “insurance gurus” to well-meaning family or friends regurgitating outdated rules surrounding auto insurance. It’s easy to make a decision based on an auto insurance myth which could actually end up costing you money, or leaving you in a position where you’re underinsured.
Here at The Lambert Agency in Austin, Texas, we hear many of these common misconceptions all of the time. In this post, we’re setting everything straight with five of the most common auto insurance myths purported across society, and the truth behind them.
Myth #1: “Your Insurance Covers Everything After an Accident”
The Truth: Auto insurance is not a one-size-fits-all solution. Your auto insurance coverage truly depends entirely on your specific policy. An example of this is, you only carry liability insurance (the Texas minimum), it covers any damages to other vehicles and property, yet not your own. To fully protect your car, you need collision coverage or comprehensive coverage.
Many Texans will discover this fact the hard way, post-accident. For this reason, we always encourage our clients to fully review their auto insurance coverage annually and ensure it actually matches up with real-world needs, not just the bare minimum, legally allowed coverage.
Myth #2: “Red Cars Cost More to Insure”
The Truth: It’s often rumored that flashy cars, or red cars will be assigned higher premiums with their auto insurance. The truth is that auto insurance companies do not care about the color of the vehicle itself. What actually matters is the make of the car, the model of the car, the year of the car, the engine’s size, estimated repair costs should something fall into disrepair, and national theft rates of the specific vehicle being insured.
If your auto insurance premiums do seem to be higher than you anticipated, your car’s color is not to blame. Your vehicle’s performance rating, your individual driving record, and your total claim history with previous insurers are the likely cause of higher auto insurance premiums.
Myth #3: “Your Insurance Follows You, Not Your Car”
The Truth: In many cases, insurance will follow the vehicle, not the driver. This means that if someone borrows your car and is involved in an accident, your insurance is more often than not the one which will kick in first.
As with anything, there are exceptions to this rule, especially when it comes to alternative types of driving such as rideshare driving, rental cars, or commercial vehicle use. Prior to letting someone else drive your car, it’s always the smart decision to double-check your auto insurance policy’s “permissive use” clause embedded within your auto insurance policy. Or, feel free to give us a call at The Lambert Agency to have us review your auto insurance policy and provide guidance.
Myth #4: “Older Cars Don’t Need Comprehensive Coverage”
The Truth: While older vehicles may not need the fullest amount of coverage, the decision on whether or not comprehensive coverage should be applied should be based on your older car’s value, not its age alone. Comprehensive coverage will cover acts of theft, vandalism, flooding, and other non-collision incidents which can still occur, regardless of the age of your car.
If replacing your older car would create a financial hardship, electing to choose comprehensive and collision coverage would likely be worth every cent.
Myth #5: “Minimum Coverage Is Enough in Texas”
The Truth:
Texas law requires drivers to maintain a minimum level of liability coverage at 30/60/25 ($30,000 per injured person, $60,000 per accident, and $25,000 for property damage). However, this is often not enough coverage in most scenarios. A single accident involving multiple parties can easily exceed those state-required minimum limits, leaving you holding the responsibility for the rest of the associated costs.
For many Austin, Texas-based drivers, we recommend increasing your liability coverage to add further protection and adding an uninsured/underinsured motorist protection rider to your policy for additional peace of mind.
Protect Yourself with Facts, Not Myths
When you’re able to understand how auto insurance actually works, it can save you time, reduce your stress, and save you money. At The Lambert Agency, we take great pride in helping Texans make the most informed, confident decisions possible when it comes to selecting their auto insurance coverage.
Whether you’re shopping for a new auto insurance policy, wanting to review your current auto insurance policy, or you just need an honest answer regarding what’s actually covered and what’s not covered with your policy; we’re here to help.
Get a Free Auto Insurance Review Today from The Lambert Agency
Your auto insurance coverage should work for you, not against you. Start having your auto insurance policy provide the right level of coverage today by contacting The Lambert Agency today to schedule a complimentary, no-obligation auto insurance policy review. We’ll be able to help you uncover any and all savings opportunities, correct any outstanding coverage gaps, and ensure you’re fully protected on Texas roads. We look forward to working with you soon and we’re eager to begin helping you navigate the myths and truths of auto insurance coverage in Austin, Texas.