Let’s Play a Game

This game is going to be all about auto insurance.  Boring right.  Wrong.  We can debunk some of the myths that many of us have grown up thinking were true about insuring the vehicles we want to drive.  This may be an informative and educational game for you to enjoy and learn what your insurance really covers and whether or not you can drive the car you want to regardless of build, color and other factors.  What you might find out is that you, along with many other Americans, are misinformed about insurance.  Let’s get started.

Are Red Cars More Costly to Insure?

Red cars will cost you no more to insure than other colors of the same car.  Color does not matter; however, the style and version of the car are what determine the cost of insurance.  A high-end sports car will cost you much more to insure than a compact sedan.  Don’t feel bad if you got this one wrong, 44 percent of those surveyed also were misinformed about this fact with drivers between the ages of 18 and 29 being the group that got this one wrong.  On the other hand if you got it right, join the slight majority at 46 percent that got it right.

You are not Covered if You Cause a Crash?

The answer to this really should be it depends upon the type of coverage you have.  When speaking about bodily harm you and the other driver are covered under liability and collision, but collision coverage is needed to have your vehicle covered if you are the at fault party of the accident.  More than 56 percent were able to answer this question right, but our younger age group of the 18-29 year olds got this wrong at a 52 percent rate.  When you only carry liability insurance you run the risk of your car not being covered in a collision, but you will be covered to the limit of your insurance.

When Your Car is Totaled Your Insurance Check is only for the Value of the Metal.

This is certainly a myth that needs to be understood.  Insurance companies pay you the market value of your car before the crash, not just the value of the metal.  This is, of course, minus the deductible you have with them.  Some companies also offer new car replacement which pays the amount the car costs new to allow you to replace your vehicle.  This question was correctly answered by half of those polled with 28 percent thinking it was the after crash value you received.

Does Your Car Insurance Pay for Mechanical Repairs?

The only way insurance pays for mechanical repairs is when they are needed and directly related to an accident that occurred.  You can purchase extended warranties for your vehicle that helps to cover your vehicle long after the manufacturer warranty expires, but these are not insurance policies.  Thankfully this was a question most people got right and hopefully you did as well.  Only 14 percent of those polled thought insurance covered mechanical repairs giving them a bit of a wake-up call.

Car Insurance Covers Items Stolen from Your Vehicle.

The items stolen out of your car may be covered, but they won’t be covered by your auto insurance, it will be by your homeowners or renters insurance.  This is the case when the items stolen are worth more than the deductible of your policy and will be less that amount when you receive the check.  As an odd question that many may never think about, 34 percent of those polled got this one wrong.  Oddly it was the age group from 47 to 65 and older that thought the car insurance would cover these items.

How did you do?  Even if you did not get any of the answers right on these questions you now have a better understanding of car insurance and what is and is not covered.  If you have been holding off on buying a red car because of the first questions, go ahead and enjoy your new red car, if you don’t have collision insurance, keep in mind the risk you run of not having your vehicle covered in case of an accident.  I hope this information helped and this game was fun and informative for you.