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There are many myths about auto insurance, which may crowd your judgment when purchasing car insurance. White Oak Insurance LLC in Milford, CT is here to set the record straight.

Here are the common car insurance myths we would like to debunk:

Myth#1: Red cars attract high premiums

This myth is grounded on the fact that red cars are assumed to be fast, hence attract high insurance rates. Among many factors considered in calculating your premiums, color isn’t one of them. So, don’t be afraid to purchase your dream red car because of the high insurance rates.

Myth#2: comprehensive coverage protects you against all risks

This perhaps stems from the word “comprehensive.” Your comprehensive car insurance only covers you against non-collision perils, like fire, theft, and falling objects. This means you should consider other car insurance policies if you want optimal protection. Other coverage options you can consider for your car include liability coverage, medical payments, collision coverage, and uninsured/underinsured motorist coverage.

Myth#3: If your friend borrows your car, their insurance covers your vehicle

That’s a blatant lie. Only your car insurance — and not someone else’s — will cover the associated losses caused by your vehicle. So if your friend borrows your car and causes an accident, it’s your car insurance that will cover the resulting liability costs and own damage.

Myth#4: Your insurer pays for the auto loan if it’s totaled

If your car is written off or stolen, your insurer will compensate you for the fair market value of your vehicle. Sometimes, this could be significantly less than the outstanding loan balance. It’s the responsibility of the owner to pay the difference. Unless you have gap insurance, you will have to pay for the difference from your pocket.