Auto Insurance in Tigard, OR

5 Common Car Insurance Myths

Tigard, Oregon, is a popular moving destination for families because it has lots of schools, work opportunities, and places to be outside. It's close to Portland, the beach, and the Cascade Mountains, and it has a low crime rate. Before you finish packing your boxes for this ideal hometown, make sure that you have the required insurance and that you know the truth behind these five myths about car insurance in Tigard.

Myth 1. You Don't Need Car Insurance

Like almost every other state, car insurance is mandatory in Oregon. You must carry a $15,000 personal injury protection policy and $50,000 for each crash and $25,000 for each person in uninsured motorist coverage. For property damage liability insurance, you need a $20,000 limit. Finally, you must carry $50,000 in bodily injury coverage for other drivers and $25,000 of the same coverage for you and your passengers.

When you're driving on Southwest Walnut Street, Fairhaven Way, or Garden Park Place, you must carry proof of insurance. That way, if you run a red light, break the speed limit, or commit another moving violation and get pulled over, you can show the police officer that you have car insurance in Tigard. If you can't, you could face these penalties:

• Loss of driving privileges
• Vehicle seizure
• Fines between $130 and $1,000
• Monthly insurance check-ins once you reinstate your driving privileges

Myth 2. You Have No Control Over Your Premiums

It's true that your insurance carrier ultimately chooses your premiums; however, there are many ways that you can take charge of your costs for car insurance in Tigard, Oregon. If you have points on your driver's license, sign up for a driving improvement class to get some of them removed. If you have room in your budget, offer to pay a higher deductible. With this strategy, you pay more every time an accident happens, but your monthly costs are lower when you don't get hit.

Myth 3. Your Car's Color Determines Your Premiums

Many people think that red cars are more likely to get in accidents, so insurance costs are higher for these vehicles. Color has little to do with your chances of getting hit, so you don't need to worry about higher costs if you have a red car.

Myth 4. You Don't Need to Worry About Your Credit Score

While color is off the table for determining your premiums for car insurance in Tigard, OR, your credit score is not. Most insurance brokers look at your credit history because it reflects how risky your behavior is and how reliable you are at keeping up with payments. Of course, if you just got your credit card, you can't help having a low score. If you've had one for several years and you have a history of getting behind on your bills, your premiums will probably be higher. 

Myth 5. Your Premiums Increase with Every Ticket

Generally, your premiums go up whenever your insurance provider deems that your risk of getting in an accident has increased. As a result, if you cause an accident or get pulled over for reckless driving, you should expect your monthly costs to go up. On the other hand, if you get a speeding ticket and handle it in a timely fashion, your premiums will probably stay the same. Just don't make a habit of blowing past Tigard's speed warnings.

This information is intended for general informational purposes only and is not intended to constitute legal advice.