4 Myths of Auto Insurance

You face a lot of risks on the road, but insurance shouldn’t be one of them. 

The AVMA Trust is here to protect you throughout your veterinary career. But did you know the AVMA Trust offers personal insurance like homeowners, renters and auto insurance to all AVMA members and their employees? We wanted to share this important new resource to help ensure your car is properly protected. 

Take a look below at the four biggest myths of auto insurance:

1. Car Color 

Red cars. Racing stripes. Flames. Certainly those cars with fancy paint jobs pay a higher premium, right? That’s a myth. The paint job is not a factor in setting rates. Insurers are much more interested in safe driving records and the cost of repairs to a vehicle. This myth is similar to the one about more expensive vehicles but the price of a car has less to do with the rates it incurs than the track record of a certain type of vehicle. Just because a certain car is lower priced doesn’t mean it will translate to lower insurance rates. If an expensive vehicle has a better history of avoiding accidents and minimizing damage, it could actually have more affordable rates than a cheaper one. However, high performance sports cars often have surcharges that affect their premium as these vehicles are more liable to be involved in riskier activities. 

2. Tickets 

Auto Insurance from the AVMA Trust Speed traps are also insurance traps, right? It is commonly thought that tickets, such as those for parking and speeding violations, automatically result in higher insurance rates. This is not always the case. For instance, if a driver has a long track record of safe driving, a single speeding ticket may not result in higher rates. Additionally, paying off parking tickets on time should minimize the risk of rate increases. However, excessive speeding and unpaid tickets are two sure ways to see prices rise. 

3. Age 

While it is true that older drivers with clean records may find it easier to obtain low insurance rates, the same policy doesn’t necessarily transfer over to the vehicles they drive. It’s a common misconception that older automobiles are cheaper to insure because there’s less risk of them being stolen. However, since there are usually more older vehicle models on the road, they can actually be more desirable to thieves for their parts. 

4. Business 

Many consumers are under the impression that personal auto insurance provides coverage for business driving. Understanding that this is not always the case is particularly relevant for the self-employed. It’s important for all drivers to fully understand what their coverage provides. Drivers looking to protect themselves and not fall victim to insurance myths should speak to the AVMA Trust to explore their options and find a plan that suits their needs. When behind the wheel, it’s always important for individuals to have the right protection. 

That last requirement raises another consideration worth discussing with the AVMA Trust. You may not live in a flood plain and your insurer may not require flood insurance. But a lot of the U.S. has been underwater recently: Two-thirds of the country dealt with historic flooding in the first half of 2019 alone. Should you get flood insurance? And are you covered for mold and sewage backup (that can accompany all that water)? 

You probably have limited or no coverage for mold or sewage backup. Additional coverage for the sewer issue, which often crops up during heavy rains, is fairly inexpensive. Mold protection is difficult to find and then is costly – upwards from $400 a year. But it might be worth it if your home’s in a high-humidity region and built before mold-resistant materials were available.

Did you Know? As a member benefit, the AVMA Trust offers personal insurance — auto, homeowners and renters — to all AVMA members and their employees. Please share this information with your colleagues whether they are AVMA members or not.