Here at our Phoenix personal injury law firm, we deal with auto insurance companies and policyholders on a daily basis, and we realize that our clients are often confused about the reality of their policies.  Here are some of the most common myths and the reality of what exactly your auto insurance will do for you.

1. The longer you stay with an auto insurance, the lower the premiums.

Many auto insurers do not reward loyalty by offering discounts for long-term customers, in fact, some insurers even raised rates on those who stuck around.  In Texas, regulators found that people who kept the same insurer for 8 years would reduce their premiums by 19 percent if they switched.

2. You can save a lot by bundling car and home insurance.

The discount for buying your home insurance from the same company as your auto insurance was approximately $97.00 a year nationally, on average.  That is about 8 percent.  However, the averages ranged from as little as $31.00 a year in Florida to as much as $240.00 in Michigan.

3. You will get a nice discount if you buy anti-theft devices.

You can pay hundreds of dollars to install anti-theft devices and you will save very little.  Consumer Reports says the average discounts for anti-theft devices are:

$8           Tracking Device

$6           Passive Disabling Device

$4           Audible Alarm

$4           Active Disabling Device

$2           VIN Etching on Window

4. My car insurance will repair my car so it is just like a new one?

Many auto insurers will push their policyholders to get their cars fixed at specified repair shops so they can cut costs, often by using inferior aftermarket replacement parts.  Policyholders are frequently less than satisfied with the results.