I’ve Heard A Lot Of Stories About Car Insurance And I Just Want To Know If It’s True?


Car insurance is an idea that is not always pointed in the limelight and because of this; there are many ideas about car insurance that may arouse curiosity on whether or not it is true. These car myths spring up from mild common sense to the more bizarre creative reasoning. Here are a few car insurance myths that people usually ask.

Red cars cost more to insure

When applying for insurance, the color of your car is never asked in any insurance form. Color does not come anywhere near the calculation of insurance rates in the United States or anywhere around the country for that matter. Usually aesthetics on a car is never a factor in calculating insurance. Most insurance companies would like to know more of what’s under the hood of your car, its age, or the year than the type of paint it’s covered in. This myth probably sprang from the idea that red has an uncanny factor of causing collisions more often (bull fighting anyone). Regardless of whether this is a proven fact; car insurance companies do not take color as a factor.  

All you need is just one ticket and your insurance rate will sky rocket

This can be true depending on where you are in the world. In America, it also depends on which state you live in. Some states have stricter driving laws than others that are not as lenient on driving violations as others. Although your insurance rate can possibly go up after one ticket, it will be a slow gradual increase and will not actually “sky rocket.”  Usually though, in many states the minimum number of tickets before insurance rates would rise it two. Keep in mind though that there can be many factors playing into the reason of why your insurance rate would rise such as the violation, your driving history or the speed at which you were going. Don’t rely on the number of tickets you receive alone to calculate if your insurance rate will go up.

Car insurance is a scam! They use their own types of calculations that we can’t follow so they can change rates and charge us whatever they want!

If that were the case, than every person would be investing in auto insurance. Contrary to popular belief, auto insurance is a regulated business. The difference in rates is because each state has a different law on how to calculate customer rates. Insurance companies must strictly follow these rates as given by their respective State or they can be prosecuted. Professional regulators are also assigned to monitor the different rates of auto insurance companies.