Although most people understand the value of auto insurance, there are many myths about car insurance that can cause problems with coverage or lead to higher insurance costs. It's unclear how some of these myths were started but, in order to avoid any problems, these are the most common auto insurance myths and the reality behind them.
1. Buying from a Dedicated Agent is Preferred Some people believe that the best way to get a low rate for insurance is to purchase from a dedicated agent who works for a carrier. The reality is that the best way to get a good rate is to get quotes from several insurance companies before purchasing. Speaking with a dedicated agent may be a good idea, but speak with agents at several companies in order to get the best rate. Independent insurance agents are also knowledgeable and may actually help consumers find the best rates available in their area.
2. Red Cars are Expensive to Insure Many people believe that having a red car drives up the cost of their insurance. However, the color of the vehicle is not a factor when premiums are calculated. An auto insurer is going to look at the following: The car's make, model, body type, age, and engine size, the driver's age, driving record, and credit history. The history of the car itself is also an important factor and all of these may lead to higher or lower costs. However, anyone who wants a red car, can purchase one knowing that it won't be more expensive to insure.
3. Keep Rates Low by Not Reporting Accidents The myth that's commonly spread is that rates will stay the same if a drive does not file a claim when the car is in an accident. It's actually a risk to not file a claim because in the case of an accident, the other driver involved may file a claim for damages or injuries. In this case, the injured party's insurance will then file a claim against the driver or the driver's insurance company. This failure to report an accident may result in higher premiums. Also, any driver who was issued a ticket as a result of the crash may have higher premiums when the insurance company sees the ticket. For both legal and financial reasons, always report accidents to the insurance company promptly.
4. Premiums Rise as Drivers Age The myth is that older drivers are at a higher risk of getting into a car crash due to their poor eyesight and slower reflexes. To make up for this risk, insurance companies will raise their prices. However, the opposite is almost always the case. Drivers who are over the age of 55 may actually qualify for reduced insurance rates as most companies will offer a discount on auto insurance to older drivers who complete a safe driving course. These are some of the most common myths regarding auto insurance and why they can actually cost drivers more over time. Use ths information to find good car insurance and keep rates low without running into any problems.