While television ads may make the process of obtaining coverage and getting the lowest rates seem as elementary as a 15-minute phone call, auto insurance is a complex subject. As an “Insurance Literacy” survey conducted by Zogby International for MetLife Auto & Home found, many consumers harbor major misconceptions about their auto insurance policies and premiums.
To that end, we contacted industry experts for answers to some of the most common – and often misunderstood – car insurance questions.
1. Are smaller cars more dangerous to drive than larger cars and SUVs, and does this mean they’ll cost more to insure?
The laws of physics dictate that, all else being equal, smaller and lighter cars will fare worse in a collision than larger and heavier ones. The PCIAA’s Don Griffin says a car’s crash-worthiness affects the cost of its liability, property damage, medical payments and uninsured/underinsured motorists’ coverage.
“If a smaller car is more easily damaged, then so are the vehicle’s occupants,” he says.
2. Does my driving record affect what I’ll pay for auto insurance?
According to insurance agent Ron Kinn, it affects more than just an owner’s insurance rates. “An insurance company will typically look at a driver’s record over the last five years and increase the premium due to accidents, moving violations and license suspensions,” he explains. “This data could also cause the person to be denied coverage or even be dropped altogether.”
3. Will my auto insurance rates go up if I am ticketed for driving while texting?
While insurance companies aren’t yet hiking premiums because of texting citations, Griffin cautions that, “If a ticket is issued in conjunction with an at-fault accident, then there could be an increase in premiums if texting caused the accident.”
