Having car insurance is a no-brainer for drivers, so much so that we may easily and automatically make wrong assumptions about how an auto policy works.
The myths and misconceptions abound, says Amy Bach, executive director of the insurance consumer group United Policyholders, including the belief that all insurance companies handle claims the same way.
“Certain car insurance companies have a reputation for being very cooperative after an injury accident, and others have the opposite reputation,” she says.
Everybody says so? It might still be wrong
Another myth people tend to believe is that when you let friends borrow your car, their personal auto insurance policies cover them, and any damage or injuries they cause. That’s not the case, says Bob Passmore, senior director of personal lines for the Property Casualty Insurers Association of America.
“Your insurance is going to cover any permissive user of your vehicle,” he says. “If you hand somebody the keys, you’ve handed them your insurance.”
The list goes on. Here are five of the biggest car insurance myths you should ignore.