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Myths About Car Insurance Busted

It seems whenever you turn on the television, there’s always a commercial telling you about car insurance. From the Geico Gecko to Flo the Progressive Lady, we are constantly bombarded with ads offering lower rates, better service, etc., etc. The sheer volume alone would suggest that car insurance is one of the most important things we need to buy. However, even though we are inundated with information about this service, there are still some lingering myths surrounding it. As a result, your coverage may not be as comprehensive as you think it is, or there may be factors you’re considering that aren’t really an issue. For example:

Red=Pricey

Watch out when you car shop, as everyone knows that red cars cost more to insure than other, possibly less flashy cars. This myth is also lumped into the stereotype that police will pull over red cars more often than other colors, due to its high visibility. However, when it comes to insurance, your carrier only cares about other factors, namely mileage, age and vehicle type.

Full Coverage=New Car

If a collision totals your car, you may think that full coverage will get you a brand new vehicle. However, most insurers will only pay to get you back into a similar car as you already had, so if you totaled a ‘86 Datsun, then you’re only going to get back into something equivalent.

Traffic Tickets=Higher Rates

This isn’t necessarily true. For your insurance company to find out about your driving record, including tickets, they have to purchase a Motor Vehicle Record from the state. If you’ve had a carrier for a long time, they most likely aren’t looking at your driving record that often; only when you get into an accident. Typically insurers run this when someone signs up for a new policy, so your speeding tickets may go unnoticed.

Credit Scores Don’t Affect Rates

Not sure how this myth started, as it is one of the major factors that insurance companies look at when determining your rate unless you happen to live in CA, MA or HI.

Turning 25=Lower Rates

This depends on a variety of factors, and sometimes turning this age can lead to discounts. However, typically insurers only look at the number of years of being a licensed driver. Thus, if you get your first license at 24, your rates won’t automatically go down one year later.

Long Term Plan=Lower Rates

For the most part, if you have a policy with an insurer for a long time with no major accidents or citations, then you will receive discounts. However, this certainly isn’t a given. It depends on the carrier, your policy, and rate fluctuations.

Whenever it comes to something like insurance, it’s best to consult your agent and find out what exactly is going on. It’s best to do this before you get into a major accident, so there aren’t any surprises when it comes time to repair or replace your vehicle. Each carrier has their own policies and procedures, so it’s important to find out what they offer specifically. Besides, if nothing else, there are always other carriers you can go to, at least, according to the TV...