Auto insurance is a complicated affair for many people. Most people are reluctant to renew their insurance and buy it on item, if it weren’t for the law. Understanding how the premiums are decided is difficult, making it even more complicated. With so much wrong information passing around, it is small wonder that insurance coverage looks unappealing to many.
It is possible to crack the common myths about auto insurance and understand it better.
Here are some of them:
Myth one: Red cars are more expensive to insure.
You may believe red cars are often spotted more in speeding and also drive aggressively, this might be correct. However there isn’t any data to back it up. Irrespective of the color of the car, insurance rates will vary. Law enforcement and insurance companies are not concerned with the color, its more about the person behind the wheel. What matters is not a profile of who you are or your car but rather the profile of the vehicle.
The make of the car, its model, its year, engine size, price and how popular it is with thieves definitely matters. As does its safety record and how much it will cost to repair.
There has been a correlation between the model of the vehicle and the likelihood of getting a speeding ticket though. Drivers with flashy cars tend to be more aggressive on the road most of the time according to a recent study. This means a greater risk in insuring such cars.
According to this study, someone driving an SL class Mercedez-Benz is more likely to receive a citation that an average driver. Among the list making the top ten ‘spirited vehicles’ includes Camry Solara Coupe (Toyota), Scions TC coupe and Hummer H2/H3 SUV.
Additional factors affecting insurance include the miles you drive every year, the places you drive to and history of accidents. Credit history has also been a part of the picture in recent years. With good credit history people are less likely to file for a claim.
Myth2: The older you are, the more you pay for auto insurance.
This is true for life insurance, but definitely not for insuring cars. In fact, the older people get, the lesser they get to pay on auto insurance. Those over 55 years of age can get a reduction of 10 percent for a period of 3 years of they complete certain requisite courses like an accident prevention course. Check for approved driving courses in defensive driving to avail of discounts with your insurer.
