Car Insurance Myths That We Have All Heard Before
Owning a vehicle means shopping for car insurance. And with that comes a number of urban myths. Who knows how they got started or why they’re still being perpetuated. But these 6 myths are now common knowledge. Before you go out shopping for new car insurance, take a look at our top 6 common car insurance myths.
The best way to get a low rate is by buying through a dedicated agent.
The truth is buying through an agent won’t get you the lowest rates. The only way to get a low rate for your insurance is by shopping around. The more companies you speak with, the more likely you are to get a low rate.
Insuring a red car is more expensive.
Red cars do not cost more to insure! The color of your vehicle literally has no impact on your premium. Rates are determined by your car’s make, model, engine size, body type, age as well as your age, driving record and credit history. There are some other extenuating factors that go into it as well, such as: repair costs, safety record, sticker price and how popular your vehicle is with car jackers.
Not reporting an accident will keep your rates from rising.
Not reporting your accident won’t keep your premium from rising. The other driver involved in the accident may call their insurance company and this will cause your rates to rise. Additionally, getting a ticket as a result of an accident will raise your rates.
If your car is totaled, your insurance company will pay your car loan.
Man, this would be great, right? But the truth is that your insurance carrier will only cover the fair market value of your car, not the balance of your loan.
Your premiums rise, as you get older.
This is absolutely false. Drivers over the age of 55 tend to qualify for reduced rates.
Credit ratings don’t determine your premiums.
The truth is that most states allow insurance companies to review your credit history to set your rates. They take this as an indicator of how quickly you’ll pay off your loan and even an indicator of your accident risk.
Bottom line is that the most important factor in getting a low car insurance rate is by driving safely and maintaining a clean driving record. Don’t let the common myths about insuring your vehicle keep you from getting the lowest rate.