6 Most Common Car Insurance Misconceptions

Finding affordable car insurance that still offers great coverage is easy if you are an informed consumer. Read below to learn six common car insurance misconceptions that will shed some light on how you can either find cheap car insurance or preserve your current, affordable policy.

Red Cars Have More Expensive Premiums

Though many people assume that flashier paint colors, such as red, come with costlier car insurance premiums, this is simply not the case. Car insurers do not assess the color of your car when drawing up a premium. However, insurance providers will consider your vehicle’s make, model, body type, year and safety features. Generally speaking, more expensive cars like SUVs or luxury automobiles have higher premiums due to costly parts and labor. However, if your car has such safety features as ABS, airbags, and anti-theft device, you may be able to receive a discount on your car insurance.

Age Does Not Play a Factor in the Cost of Car Insurance

It is true that drivers under the age of 25 and seniors over the age of 65 pay more for car insurance. Statistics show that these age groups cause more traffic accidents than drivers between the ages of 26-64. The highest car insurance premiums are generally saved for male drivers under the age of 25 because studies show that this group is involved in more traffic accidents than all others.

I’m Not Responsible if my Friend Wrecks my Car

The fact is: if your car is in a wreck, it’s your responsibility. The accident will go on your insurance record and could result in a higher premium. Your insurance will cover the cost of the wreck, no matter what the circumstances surrounding the accident are.

My Credit Score Doesn’t Affect my Car Insurance Premium

Your credit score affects almost every aspect of your life, from your ability to get a job, buy a home and even lock in a low car insurance rate. You can increase your credit score by paying your bills on time and being responsible with your finances. Simply go online to run a free credit report, review your standing and take any necessary action to improve your score.

My New Car is Automatically Covered by my Existing Policy

If you buy a new car, you must inform your insurance company immediately so that they can transfer your existing policy to cover the new car. If you do not contact your insurer, your new automobile may not have proper car insurance.

Collision Covers All Non-Driving Damages

Most drivers feel protected with collision coverage. While collision is an important option to consider, it only covers driving-related incidents. Collision does not cover non-driving damages, such as theft and vandalism, or damages due to fire, storms or animals. If you would like to be protected against non-driving damages, speak with your insurer about comprehensive coverage.

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