Auto insurance is something most drivers have, but few take the time to fully understand. While you may know the basics—like needing coverage to drive legally—there are plenty of lesser-known facts that could save you money and help you make smarter insurance decisions. Here are a few surprising things about auto insurance you might not know! Your Credit Score Can Affect Your Insurance Rates Many insurance companies use your credit score (where legally allowed) as a factor in determining your premium. A higher credit score often means lower rates because insurers see you as less risky. If you want to save on auto insurance, maintaining good credit can help! The Color of Your Car Doesn't Impact Your Premium A common myth is that red cars cost more to insure. In reality, insurers don’t factor in color when determining rates. What does matter? Your car’s make, model, age, safety features, and how expensive it is to repair or replace. You Might Be Covered for Rental Cars (Without Extra Insurance) Before paying extra for rental car coverage, check your existing auto policy! Many policies already include rental car coverage for accidents, and some credit cards offer additional protection when you book a rental. Where You Park Your Car Can Affect Your Rate If you park in a garage or secure location, you may get a lower rate than if your car is regularly parked on the street. Insurers consider where you store your car overnight when determining risk. Personal Auto Insurance Doesn’t Cover Business Use If you use your personal vehicle for work-related activities (like making deliveries or driving clients), your standard policy may not cover you in case of an accident. You may need commercial auto insurance or a policy add-on to stay fully protected. A Lapse in Coverage Can Increase Your Premiums Going even a few days without auto insurance can lead to higher premiums when you reinstate your coverage. Insurance companies may see gaps in coverage as a red flag, so it’s best to maintain continuous insurance whenever possible. Final Thoughts Auto insurance is full of details that many drivers overlook. Understanding these little-known facts can help you save money and ensure you have the right protection on the road. If you have questions about your auto policy or want to explore better coverage options, ABC Insurance Group is here to help— reach out today for a free review!

When it comes to insurance, having the right coverage can mean the difference between financial security and unexpected hardship. Yet, many people make common mistakes that leave them underinsured or paying more than necessary. Here are five frequent insurance missteps—and how to avoid them. 1. Under-Insuring Your Home The Mistake:  Many homeowners only insure their home for its market value rather than the full cost of rebuilding it. How to Avoid It:  Work with an agent to calculate replacement costs, factoring in materials, labor, and potential inflation. 2. Relying Solely on Employer-Provided Life Insurance The Mistake:  While workplace life insurance is convenient, it’s often not enough, and coverage may end if you change jobs. How to Avoid It:  Consider a supplemental individual life insurance policy to ensure long-term protection for your family. 3. Choosing the Cheapest Policy Instead of the Best Coverage The Mistake:  A lower premium might seem appealing, but it often means higher deductibles or insufficient coverage. How to Avoid It:  Compare policies based on coverage, not just price. Make sure you have adequate protection for your needs. 4. Not Bundling Policies for Discounts The Mistake:  Purchasing auto, home, and other policies separately can mean missing out on multi-policy discounts. How to Avoid It:  Ask your insurance provider about bundling options to save money while simplifying your coverage. 5. Forgetting to Review and Update Policies Regularly The Mistake:  Life changes—like buying a new home, having a child, or starting a business—can make old policies outdated. How to Avoid It:  Schedule an annual policy review with your insurance agent to ensure your coverage keeps up with your needs.