Busting the Myths about Auto Insurance

Busting the Myths about Auto Insurance. If it is your first time purchasing a car insurance policy, then you might have heard a few myths and rumors surrounding auto insurance.

Before you believe any of these myths and end up falling prey to unscrupulous companies and individuals, make sure that you learn the truth behind them. 

Some of the rumors about car insurance that you might have heard may be:

Myth No. 1: Living in a Location with a Clear and Dry Weather is a Basis for Cheap Car Insurance

A lot of individuals believe that they will be able to get the cheapest car insurance available if they live in areas that are always sunny, always clear, and always dry.

Read Also: Facteurs affectant le coût de Car Insurance

This is because they think that places that have clear and dry weathers are most likely to cause road accidents. Because of this, they are under the impression that auto insurance companies ask for their addresses in order to determine the weather conditions that they have in their area.

The Truth

Car insurance companies ask about your address not because they want to know the weather conditions of your location but because they need to check the crime statistics in your area. If you live in a lower crime rate area, then you will be able to find the cheapest auto insurance.

On the other hand, you might have to pay for higher premiums if you live in an area that has a higher crime rate.

Myth No. 2: Parking Tickets cause Insurance Premiums to Increase

There are some people who believe that parking tickets cause their car insurance premiums to increase.

The Truth

Parking tickets, while still considered as violations, are non-moving type of violations. And so, these do not have any bearing on your insurance rates. However, keep in mind that not paying your parking tickets can have a significant effect on your ability to renew your license.

This is the time that your insurance rates will be affected. It is also important to note that there are some insurance companies that look closely at your driving records, so if you have speeding tickets and other driving citations, this may also affect your insurance premiums.

Myth No. 3: The Color of the Vehicle affects the Insurance Rate

Another myth about car insurance that many people believe is that the color of their car affects their insurance premiums. In fact, it is a popular belief that red, silver, and black vehicles are easier to sell and thus have a higher value.

And because they have a higher value, they also think that they are more expensive to insure. Thus, there is a rumor that if you want to get the cheapest car insurance premium possible, you have to choose a car color aside from red, silver, or black.

The Truth

While the model, the year, the make, and the type of car are some of the major factors used by car insurance companies to gauge the premiums they will charge, the color of the car does not have any effect on your premiums.

So you will still be able to purchase the cheapest auto insurance policy even if you have a red, silver, or a black car. (*)