6 Car Insurance Myths Debunked

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Car insurance can be a mystery and confusing to many folks, but there are some common car insurance myths that just seem to add to its inexplicable allure. This article attempts to debunk the folklore and set the record straight.

Car Insurance Myth #1: Red Cars Are More Expensive to Insure Than Other Colors
Total myth – most car insurers do not even ask for the color of your car when you make an application and receive a quote. However, the year, make, model, type of body, size of engine and drivers on the policy do make a difference in how much you will pay.

Car Insurance Myth #2: One Speeding Ticket Will Cause My Rates to Skyrocket
Partial myth – your driving record will definitely affect the rate that you are charged for car insurance, but one ticket is typically insufficient to make a big difference in your premiums. Maintaining a good driving record and taking a defensive driving course can lower your rate, however.

Car Insurance Myth #3: I Only Need Bare Minimum Coverage
Myth – although some drivers can squeak by with minimum coverage, most people should carry comprehensive coverage. The level of car insurance that you require should be based on the cost of replacing your vehicle and any assets that you are looking to protect in a worst case scenario.

Car Insurance Myth #4: It Costs Less to Insure an Older Car
Sometimes – but the rate that you will be charged to insure a car is dependent upon many factors, such as the annual mileage on the vehicle and who drives the vehicle. Many drivers of older cars choose to carry liability only coverage on their vehicles, which is obviously cheaper.

Car Insurance Myth #5: Car Insurance Rates Go Down at Age Twenty-Five
That depends – many times car insurance rates will begin to decline at age twenty-five, although the driver’s personal driving history will determine the truthfulness of that statement.

Car Insurance Myth #6: I Should Stick With One Insurance Company for Life to Save Big
Complete myth – even though some drivers do get a discount for customer loyalty, those drivers usually need a squeaky clean driving record in order to do so. Car insurance companies are highly competitive, and this stiff competition drives down premiums when an insurer wants to steal your business. For this reason, comparing your insurance rates with top companies at least annually is the best way to be assured of getting the lowest price on the car insurance your need.

by Melissa Spicer