5 Common Myths with Car Insurance....

Five Common Auto Insurance Myths


When searching for affordable, dependable Tennessee auto insruance, it's vital that you really know the facts. Unfortunately, may drivers have fallen into the trap of some pretty crazy insurance myths. Here are a few of our favorites....


1. “No-fault accident means it’s not my fault”

A “no-fault” accident means that there was no one charged as guilty or innocent. Your insurance company will typically still pay for medical expenses and lost wages for injuries due to a car accident.  It allows for faster payment for immediate medical needs while the respective insurance agencies, for the parties involved, determine amongst themselves which company will pay for the accident.

2. Don't Buy a RED car or your car insurance will be too expensive!

The color of your car does not impact your car insurance rates. Some factors about the car that do affect the rate: year, make, model, body type, and engine size. Other factors on the rate of car insurance could be how much it would cost to repair or replace the vehicle.


3. If I lend my car to a friend and they are in an accident their insurance will cover it.

Sorry, if it’s your car then it’s your responsibility. And guess what, even if you weren't there during the accident, it could go on your claim record and your premium could go up!  So, be careful who you allow to drive your vehicle!
**Disclaimer: Typically in the state of Tennessee this is accurate, however check your policy jacket to be sure***


4. My credit score has no affect on my insurance rates.

Your credit score really does matter! Most insurance companies use your credit score for rating when you purchase, change or even when you renew your policies. Some other factors you may not think of: marital status, where you live, and, of course, your driving record.

5. I only need the bare minimum for car insurance coverage.

All states have minimum limits legally required. But many of the required limits are not enough to cover all of your costs in an accident. If you cause an accident that results in a lawsuit and your limits don’t cover all of the damages you are responsible for the costs. Even if that means garnishing your wages or future wages.

Don’t allow yourself to walk around misinformed, it’s crucial that you completely understand what your auto policy does and does not cover.

Have further questions about Tennessee Auto Insurance? Interested in a free auto quote or complete evaluation of your current coverage? Contact CL Butcher Insurance Agency…we’d be happy to help!