Car insurance can be a mystery to a lot of people, but there are some common car insurance myths that just seem to add to their inexplicable allure. This article aims to debunk mythology and set it straight.
Auto insurance misconception # 1: Red vehicles pay more than other colors for insurance
The complete myth – most car insurers don’t even ask for your car color when you apply and get a quote. Year, however, make, model, body type, engine size and regulation drivers make a difference in how much you pay.
Auto Insurance Myth # 2: One Speeding Ticket Would Skyrocket My Costs
Part of the misconception – your driving record will certainly impact your insurance rate, but one violation is usually not enough to make a major difference in your premium. Holding a good driving record and taking a defensive driving course will improve the score.
Car insurance myth # 3: I just need the bare minimum coverage
Myth – while some drivers will fail with limited coverage, most people should be covered extensively. The car insurance level you need should be based on your vehicle replacement cost and any assets you want to safeguard in the worst case scenario.
Auto misconception # 4: Insuring the Older Vehicle is less expensive
In certain situations – the cost of insurance on a car depends on a number of variables, including the total vehicle miles and who drives the vehicle. Most older car drivers just want to cover their cars with liability, which is naturally cheaper.
Car insurance Myth # 5: Car premiums Go Down at 25 years old
That depends, although the driver’s driving history will determine the truthfulness of that statement, often car insurance rates will start to decline at age 25.
Car Insurance Myth # 6: I Should Stick With One Insurance Company and Save Big
Total misconception – while some drivers are granted a customer loyalty discount, such drivers typically need a diminishing clean driving record. Car insurance firms are highly competitive, which reduces prices when an insurer wants to steal your business. Therefore, the only way to make sure that its lowest price on auto insurance is to compare the insurance rates at least annually with other insurers