Rumors and myths are usually floated around about every service or product in the market and the auto insurance industry is no exception to this rule. There are various vehicle insurance myths floating around that scare car owners when ever it’s time to insurance the car. This article will provide information on the top 6 auto insurance myths and also provide facts.
The Color of a Car Affects the Premium
Most car owners are scared that if they buy red cars or yellow cars their car premium will sky rocket through the roof. This myth is probably based on the assumption that since sports cars are usually red and yellow, all owners who own cars that are of these colors also have to pay a high insurance rate. The fact is that the make, model and condition of your car actually affect your insurance rates and not the color.
The Government Decides the Standard Auto Insurance Rates
The government does not decide the current vehicle insurance rates since the government has nothing to do with vehicle insurance. Various factors such as your driving record, your car type, your car’s condition and your age decide the amount of money you pay to insurance companies every year.
As I Grow Older I Will Have To Pay More
This is one of the most common auto insurance myths in the market. The truth is that people between the ages of 21 – 55 pay the lowest auto insurance where as people under the age of 21 and over the age of 55 pay higher vehicle insurance premiums. Till you grow to the age of 55 years old you do not have to pay high premiums but after reaching the age of 55 years if your vision is affected then you may have to pay higher premiums.
All Car Modifications Increase the Premium
This is another common myth that scares most car owners. The truth is that you will have to pay a higher premium for car modifications that enhance the beauty of your car or for modifications that enhance the speed of your car. By changing your seat covers or by installing safety devices your insurance rate does not increase. In fact many insurance companies give discounts to car owners who install safety features like automatic seatbelts, air bags and additional theft alarms.
My Credit Score is the Only Factor That Affects my of Auto Insurance rates
Your credit score is one of the factors that affect the amount of premium you pay but this is not the only factor. There are various other factors that decide how much money you pay for insurance premiums every year. Some of the common factors include your gender, your age, your vision, your location, the condition of your car, your car’s make and the mileage you drive at.
Comprehensive Coverage is not needed
Comprehensive coverage may not be mandatory in many states but this coverage is definitely useful. Comprehensive coverage protects your own interests if your car is damaged during a natural calamity or if your car is hit by an animal. This cover also protects your interests if you car has been vandalized. Comprehensive coverage pays for repair and damage to cars so that the car owners do not feel the pinch when their car is damaged.