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Auto Insurance myths

It will likely come as no surprise that the public holds many misconceptions about insurance. You’ve probably even heard some of the myths. How pervasive are these beliefs? A recent survey reveals a lot:

  • 54% of drivers surveyed mistakenly believe auto insurance rates are not regulated and that carriers can charge whatever they want.
  • One out of 4 drivers mistakenly think carriers consider vehicle color when determining rates.
  • 28% of drivers do not know that, in general, insurers consider vehicle weight when determining rates and 7% do not know that insurers look at whether the driver currently has auto insurance.
  • 63 % of drivers wrongly believe that new autos are always more expensive to insure than older cars.
  • 60% mistakenly think rates go down drastically when a driver turns 25.
  • 48% wrongly believe Comprehensive coverage protects them in all situations.

When asked to cite good reasons for carrying only minimum liability limits, drivers surveyed mistakenly chose the following:
  My car is old and has little or no re-sale value.   I am a good driver.
Our job at Village Insurance is to protect you and your family.