7 Interesting Auto Insurance Facts

Insurance is a complicated and sometimes boring industry. However, these interesting auto insurance facts might help you learn some things you didn't know such as the fact that comprehensive coverage doesn't actually mean complete coverage, or that paying a higher deductible is actually a better choice for you.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Mar 30, 2021

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Insurance is a big, complicated, and sometimes boring industry.  Hopefully you enjoy these interesting auto insurance facts. While we can’t say that they are funny auto insurance facts, we can tell you that these are auto insurance facts you should know, and they will be important to know the next time you are working on understanding auto insurance.

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1) Comprehensive coverage doesn’t mean complete coverage.

While comprehensive coverage may sound like coverage that will cover you in every situation, this is certainly not the case. Comprehensive coverage simply means you are covered in scenarios other than collisions. Theft, flooding, vandalism, and fire damage are examples of when comprehensive coverage will help you.

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2) Your car affects your rates.

The car you drive greatly affects what you will have to pay to get your car covered. If you have a fast, small car you will probably find yourself paying a higher premium for your auto insurance. On the other hand, if you are driving a mid-sized car with all the safety features, your rates will be significantly lower.

3) Your credit score affects your rates.

This may sound a little strange at first, but it is an effective way for auto insurance companies to judge one’s responsibility. Not only does is your credit score a good indicator of if you will pay on time or not, but it is also an effective judge of character, something auto insurance companies find very important.

4) The higher your deductible the better.

If you believe you are a good driver, a high deductible may be a good choice for you. Deductibles are what you have to pay out of pocket in case of an accident before the auto insurance kicks in. It’s best to choose the highest deductible you believe you can afford at any given time. Doing so will greatly reduce your premium.

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5) Pay semi-annually rather than monthly.

If you are willing to pay six months in advance, or even a year in advance, for your auto insurance coverage, you will be able to save a great deal of money.

6) Letting your policy lapse can be costly.

When an insurance company sees someone that has been driving without auto insurance, especially since it is required by state law, they will consider you irresponsible, and often times they will make you pay for it. If you are switching companies, make sure you have a replacement set up the day your current policy expires to avoid extra charges.

7) You can ask for discounts.

Before signing for auto insurance with a particular company, don’t be afraid to ask for discounts. You’d be surprised what discounts you qualify for. You may even be able to get a discount just for asking.

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Insurance Facts Infographic

The following infographic was brought to us by Enhance Insurance.  We hope you enjoy these interesting insurance facts and important points for car insurance. (Click to view full size)

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