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Facts and Myths about Car Insurance

If you are a first time insurance buyer, it is essential for you to know about the facts and myths associated with car insurance. Some of them are:

Myth # 1:

Car Color Matters

Many people are of the opinion that the color of their car will have a major effect on their car insurance rates. There's a popular belief that cars with colors such as silver, black or red are relatively easier to sell and so have a better value. Such cars attract more expensive insurance quotes. Hence, there is a myth that if you wish to get a cheap car insurance rate, you should consider buying a car that isn't silver, black or red.

Fact:

Although the type and model of the car can affect your insurance rates, the color of the car has no bearing on the insurance rates.

Myth # 2:

Residing in a Sunny Area Will Get me a Cheaper Car Insurance Quote

There's a myth that in dry and clear weather drivers are less likely to meet with an accident. And so, many people are under the false impression that car insurance companies ask them about their addresses to know about the weather conditions in their area.. Hence, they believe that staying in a dry, sunny area will get them a cheaper insurance quote.

Fact:

Auto insurance companies may enquire about your address, but that has nothing to do with the weather conditions in your area. They ask about your address to check the average crime levels in your area.

Myth # 3:

Parking Tickets Increase Insurance Premiums

Some people are under the impression that if they get a parking ticket, they will have to pay higher insurance rates.

Fact:

Parking tickets are considered non-moving violations and do not have any influence in the insurance rates. However, not paying tickets can affect your ability to renew your driver's license and this can have a major impact on your insurance rates.

Myth # 4:

My insurance policy will cover me if my car is vandalized, stolen or damaged because of natural disasters.

Fact:

This entirely depends upon the type of car insurance coverage you have. If you have opted for a 'liability insurance policy,' you won't receive a single penny for the damage caused to you by natural disasters. You need to buy both comprehensive and collision insurance policies and ensure they have damages from natural disasters covered to protect your car from all types of damage.

We hope this clarifies some of the common facts and myths related to car insurance. We aim to add more here. Please contact us if you have any more facts and myths you need us to explain.

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