Does insurance for red cars cost more? Should you and your friend pay same premium amount for cars bought in same year? To help you get maximum mileage out of your car insurance policy, we are hereby debunking the most prevalent car insurance myths
Myth: Red cars cost more to insure.
Realty: Absolutely wrong. As per Insurance crime bureau report, car thieves prefer older models compared to newer models because they are easier to steal .Newer models has modern technology to prevent theft.
Myth: Female drivers will pay higher insurance premiums.
Realty: Incorrect. The car insurance premium is determined by factors such as type of vehicle, age of car, marital status, driver’s track record etc. So, car insurance rates will vary from person to person & not gender biased.
Myth: Red cars cost more to insure.
Realty: The factors that decide your car premium are year, model, make, and engine size, age of your car, driver’s information & claims made in the past
Myth: Credit scores is irrelevant while calculating insurance premium
Realty: Most insurance companies consider lot of factors to determine your car insurance premium rate. Many companies look at this credit score since it is an indication of how well you manage your financial affairs & reflects status of your financial situation.
Myth: My car insurance premium will be same as my neighbor’s car insurance premium.
Realty: The car insurance premium is determined by factors such as type of vehicle, age of car, marital status, driver’s track record etc. So, car insurance rates will vary from person to person.
Myth: My neighbor borrowed car, so he is responsible if there is an accident.
Realty: Car insurance companies follow the car & not driver. Ultimately, you are responsible for an accident & any damages it causes.
Myth: When I buy new car, my auto insurance company is aware of it and my new car is covered.
Realty: This is not correct. Most insurance companies are required to be notified through you or your agent within certain number of days. Generally, you have 30 days to enroll your vehicle for insurance policy.
Myth: Personal property inside my car is secured under car insurance.
Realty: Sorry. You are out of luck, if your I-pad or expensive laptop gets damaged when your car meets accident. In such case, you can file claim through homeowner’s policy & not through car insurance.
Myth: Since
Realty: Absolutely wrong. As per Insurance crime bureau report, car thieves prefer older models compared to newer models because they are easier to steal .Newer models has modern technology to prevent theft.
Myth: Female drivers will pay higher insurance premiums.
Realty: Incorrect. The car insurance premium is determined by factors such as type of vehicle, age of car, marital status, driver’s track record etc. So, car insurance rates will vary from person to person & not gender biased.
The most important factor which decides the car insurance premium is Market Value. Type and track record of of driver is irrelevant. Certain points u do make sense but not all.