If you get into a car accident in Rhode Island, one of the most important things is that you have car insurance. Insurance helps you pay for damages and can prevent you from ending up in court or in financial trouble. When it comes to insurance, though, there are many things people do not understand. You may have heard some of the myths out there. Here are a few common insurance myths cleared up by the Insurance Information Institute.
Perhaps one of the biggest and most dangerous myths is that you only need to get state minimum insurance coverage. While this may make you legal on the roads, it is a huge mistake. The minimum coverage does not cover your vehicle and may not offer enough coverage, which means you could still end up being sued if you are responsible for an accident.
Insurance costs are not affected by credit. This may not be as damaging of a myth, but it is still untrue. Insurance companies will check your credit and use it as a factor in determining your rates. So, it is important to keep your credit rating good, so you aren't charged more.
Finally, another common myth is you can use your vehicle for work and your personal insurance policy will cover you. Business use of your vehicle requires special coverage because the risks are higher. If you get into an accident while using your vehicle for work, your insurance company may not pay. This information is for education and is not legal advice.