Auto Insurance Rating Myths

It’s not easy to wait for your new or renewal auto insurance rate quote. While you wait, all the driving sins you’ve committed over the past year or more rest heavily on your shoulders and you may become increasingly certain that every decision you’ve made, including the color you’ve chosen for your car, will backfire on you.

A lot of these worries are due to myths that abound about auto insurance rating. Let’s take a few moments to bust some of them.

Car color determines rates: When was the last time an auto insurance company or agent even asked you what color your car was? That answer should be never, because car color does not factor into auto insurance rates. While a sports car might be given a higher rate than a sedan, the color has nothing to do with it; it’s all about the propensity of a driver of one type of car to behave a certain way and, subsequently, introduce more risk to the insurer.

Personal ownership of the vehicle means personal insurance is needed: When you insure a vehicle, you are insuring it against the risks it faces while it is in use—not the risks it faces due to the name on the title. If you use your personally owned vehicle for your business, then you need commercial auto insurance, no matter what or what owns it.

Getting married makes auto insurance rates cheap: When underwriters determine your risk and decide how much you should be charged, they look for insights about your potential behavior based on your age, marital status and driving record. So while getting married definitely helps to make you look like a more conservative driver, your driving record could counter-balance that and leave you with no significant discounts due to marital status.

Having an accident will increase your rates: The nature of any accidents you have will go far in determining whether or not you suffer a rate increase as a result. If you have an accident and your driving did not contribute to it, but you have a claim against the uninsured motorist coverage on your policy, then there may be no rate increase at all. Insurance companies are looking for behaviors that deserve rate increases, not incidents beyond your control.

When it comes to something as intangible as an auto insurance rating system, myths are sure to abound. But there is a simple way to bust the myths and get to the truth—and that is to call your agent. He or she will help you determine what is fact and what is myth when it comes to your auto insurance premium.


Let Worthington Insurance help you with a Philadelphia Auto Insurance quote today!

Motorcycle and Scooter Insurance Basics

While drivers of motorcycles and scooters can likely speak for hours about the variances between these two vehicles, when you are looking at them in terms of insurance, these two bikes often have coverage options that are identical. Sure, when you ride, the power of the engine in a motorcycle is vastly greater than that of a scooter, but realistically, both machines subject their riders to the same types of risks. It is important to note that state minimums and maximums for each type of coverage can vary so check with your state’s department of insurance to get the details.

In general, drivers of both can expect to choose:

Bodily Injury and Property Damage Liability: This is a required coverage in 49 states. Bodily injury liability covers the injuries you might cause to others when you are at-fault in an accident. Property damage covers the property that you might damage in an accident that is your fault. These coverages ensure that an individual damaged by you either physically or financially has a means to seek reimbursement that does not rely on you having sufficient savings.

Comprehensive and Collision: If your motorcycle is damaged in an accident and you are at-fault, or if it is stolen or vandalized, then comprehensive and collision coverage is the way toward a new bike or repairs.

Uninsured Motorist Coverage: While insurance might be required for all drivers in your state, that doesn’t mean they will actually carry it. When you are in an accident and an uninsured motorist is at-fault, you need to get reimbursed by the uninsured driver unless you have uninsured motorist coverage, in which case you can get benefits from your policy.

Custom Parts and Equipment: Many motorcycles and scooters are upgraded by their owners and have custom parts and equipment. Because this changes the value of the bike from its stock value, additional insurance benefits may be necessary. Custom parts and equipment coverage is an optional coverage that is often part of your comprehensive and collision coverage.

Many of the largest differences in motorcycle and scooter insurance coverage will come in when rates are factored, because the size of the motor, weekly mileage and accident information for your area will all be factored in. Make sure you specify which type of bike you ride when you shop for the insurance and that you are familiar with all your state’s requirements.


Contact us today for your own Philadelphia Motorcycle Insurance quote!