Auto insurance is expensive and complicated and not many like buying auto insurance. But it is important to understand the premiums and the way they are determined. There is a lot of misinformation with regard to the premiums and insurance coverage.
Insurance Information Institute a non-profit has helped debunk a few common auto insurance myths:
– It costs more to insure red cars – there may be some who believe that those who drive red cars are far more aggressive and get many more speeding tickets. While this may make sense to a select few, there is no evidence to support this claim.
The bottom line is that it really does not matter if the car is green, purple, or red, states Loretta Worters, VP, Insurance Information Institute. Neither the law enforcement nor the insurance is really concerned about the color of your car.
Bob Calkins, spokesman, Washington State Patrol states that they look at the behavior and not the appearance. He states that they don’t profile people nor do they profile cars.
– Motorists who are older have to pay more for auto insurance – while life insurance certainly goes up with age, auto insurance doesn’t really go up with age. More often than not, it is the other way round.
In fact, drivers who are over 55 years of age get discounts on auto insurance rates. They can avail around 10% discount for 3 years by successfully completing an accident prevention course.
– Insurance policies cover all damages to your vehicle – it simply doesn’t work that way. The liability cover that is required in some states will only cover you if you have hurt someone or caused damage to their property. Whereas, comprehensive and collision cover will actually protect your vehicle. Hence this cover is generally optional. However, if the vehicle has a loan then the lender will insist on having this cover until the term of the loan.
– Soldiers pay more auto insurance – in fact, it is the other way round. Those who are in military services irrespective of the branch are qualified for discounts on auto insurance. It is necessary to document the rank and the tenure of their service. There are also insurers who provide discounts for former members of the military as well as their family members.
– Policy will cover you even while on business – if you are self-employed and use the vehicle for business personal auto insurance will not protect you.
