subject: Reach Out Behind The Myths Surrounding Auto Insurance [print this page] A myth will only remain a myth to you if you don't know the fact behind it. Believing in the auto insurance myths can cost you, or even if it doesn't, why should you go along a road which is misleading? Several auto insurance myths rule around in the market which might baffle you. It's better to do your own research than to believe in them. Read along to know the truth behind the popular car insurance myths that you might have come across.
Popular auto insurance myths & facts
Myth 1-The color of your car influences the rate charged by the insurers
Fact- No, it doesn't. A popular misconception exists that red cars cost more to insure. This is absolutely wrong. The color doesn't matter to the insurer, the condition of your car does. It is not that the red cars are going to have more damage than a black or a blue one if they meet with an accident. The insurers determine your insurance premiums on the basis of the make, model and age of your vehicle, as well as on the fact that who"ll be driving it.
Myth 2- Old cars are safe from theft
Fact- It has been found that older models of the cars are easier to steal. If you have a classic or antique car, you need to be more cautious, since the value of those cars appreciates with time. The parts of the older vehicles also have much demand in the market. Besides, can anyone really predict what a thief is going to prefer? So, insurance is necessary for all kinds of vehicles, whether old or new.
Myth 3-Credit scores don't have any effect on auto insurance rates
Fact- The insurers have a look at the credit reports of an applicant, before they determine the premium rates for him/her. The credit score of an individual reveals his/her financial condition. A person with a good score is considered to be less risky by the insurers, since they feel that he/she will most likely be able to continue paying the insurance premiums regularly as well. If you have a poor credit rating, be prepared to pay more for your auto insurance.
Myth 4- You don't need more coverage than your state's minimum auto insurance limits
Fact-Insurance needs vary from person to person. The minimum car insurance requirements as specified by the state may not cover all of your insurance needs. If you meet with an accident, and you don't have enough insurance coverage, you'll have to bear the cost for the damages on your own. You may even risk losing your assets.
Myth 5- Your automobile insurance will be cheap if you have a good driving record.
Fact-This is only partially true. Driving records definitely influence your auto insurance rates. But it is not the only determining factor. The insurers may charge you higher rates if you have an expensive vehicle or a sports car. Again, vehicles which are used for commercial purposes cost more to insure. Besides, the rates for the policies also depend on the insurers.
It is advisable to use your own brains when you go out to buy auto insurance for your car, than to believe blindly in anything that you might have heard. Shopping around for insurance is a smart move to get the best deal for your car. Do your own research so that you won't be fooled into believing the myths.
by: Juanita Martinez
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