Myth or Reality?

Myth or reality: Red cars cost more to insure.

Myth. In fact, insurance companies don’t even ask about color in calculating a premium. Instead, here’s what they look for:

• Year, make, model, body type, engine size, and age of your car
• The driving records of the drivers on your insurance policy
• Where the vehicle is garaged

Myth or reality: A single speeding ticket will make insurance rates skyrocket.

Myth, mostly. Some states don’t allow insurance companies to raise premiums based on a single, minor moving violation. According to the Department of Motor Vehicles, your insurance company likely will not raise your rates after one ticket if you’re a longtime customer with a previously clean driving record. That said, if you tally up a high number of points with your state’s DMV because of traffic violations, it could send your rates soaring.

Myth or reality: Moving affects your coverage.

Reality. When you move, especially to a different state, you should contact your auto insurer, so an agent can update your policy and confirm that coverage is offered where you live.

Myth or reality: Auto insurance always covers damage from vandalism, theft, and random acts of nature.

Myth. Your coverage greatly depends on your policy choices. Collision insurance typically covers damage to your car from a collision with another vehicle but, unfortunately, not from vandalism, theft, or Mother Nature. You need to add comprehensive coverage for protection from covered hail, theft, vandalism, deer, and similar mishaps.

Myth or reality: Every auto insurance company’s rates are about the same.

Myth. Premiums vary significantly among companies, and each offers different coverage packages. It’s best to review your auto insurance policy with your agent regularly to ensure you’re getting the best rates possible for the coverage you need.

Nationwide Insurance® is proud to partner with U.S. Masters Swimming. Join the Nation today and see what you could save with a special discount—just for being a U.S. Masters Swimming member. For more information, call 1-888-889-4322, visit your local agent, or go to nationwide.com/USMS.

In addition, ask your Nationwide agent about Accident Forgiveness.* With this added to your policy, you may avoid a rate increase following the first at-fault accident on your policy. See your agent for details.

Nationwide may make a financial contribution to this organization in return for the opportunity to market products and services to its members or customers. *Savings compared to stand-alone price of each policy, based on national customer data from November 2010. Products Underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Nationwide Lloyds and Nationwide Property & Casualty Companies (in TX). Home Office: Columbus, OH 43215. Subject to underwriting guidelines, review, and approval. Products and discounts not available to all persons in all states. Nationwide, Nationwide Insurance and the Nationwide framemark are service marks of Nationwide Mutual Insurance Company. ©2011 Nationwide Mutual Insurance Company. All Rights Reserved.

*Optional feature. One violation per policy during a three-year period. Products underwritten by Nationwide Mutual Insurance company and affiliates. Home Office: Columbus, OH. Details vary by state and policy language. Please consult your policy for the specifics of your selected coverages. Subject to underwriting guidelines, review, and approval.