It is no secret that driving on California roads can be scary at times. Insurance coverage is vital whether the vehicle of choice is a car, motorcycle or semi-truck. When an accident happens and one or both parties is injured, that is when insurance will come into play.
According to the Insurance Information Institute, there are many myths about auto insurance, but part of the purpose is to cover the medical costs of anyone who is injured in an accident. A better understanding of insurance may save tens of thousands of dollars in the event of an accident.
Myth 1: Only the minimum is necessary for liability coverage
Consumers are required in most states to purchase liability coverage, which covers the costs of vehicle repair and medical care if the driver is at fault. Many opt for the minimum insurance coverage, but the driver may end up covering the extra costs if insurance runs out.
Myth 2: The driver’s insurance always covers the costs
When someone loans their car to someone else, it is a common belief that the driver’s insurance will cover any damages if there is an accident, but this is not always true. Typically, insurance is connected to the car rather than a driver, meaning the owner of the car may still be responsible even if someone else was driving when the accident occurred.
Myth 3: Older drivers pay more for insurance
Although the Centers for Disease Control and Prevention identifies older individuals as more likely to be in an accident than any other age group, insurance companies often offer a discount for older drivers. State agencies also offer them a discount and completing an accident prevention course may decrease the cost of insurance.