The Red Car Myth And Other Auto Insurance Fables
Buying a car is probably one of the first substantial investments you’ll make as an adult. And because of its significance, you’ll want to do your homework. Automobile insurance is one essential piece of the package that you should not overlook. Trying to avoid industry rumors, fables, and false information can sometimes make your research challenging. The most notorious piece of misinformation in auto insurance is the red car myth, which has people avoiding the purchase of a red vehicle for fear that this paint color will leave them with higher insurance premiums.
It’s vital that auto insurance customers are well-informed, so keep reading to dispel of the red car myth and other common auto insurance fables.
Myth #1: Red Cars Cost More to Insure
According to one study, nearly half of Americans believe that owners of red cars will pay more for auto insurance, showing the wide reach of the red car myth. Car insurance companies have repeatedly dispelled this falsehood, with many not even asking about the color of your car when providing quotes. The aspects of a car that will matter are the make, model, type, and age of the vehicle, among some other characteristics of the car. But color is not one of them.
Myth #2: Cheap Cars Are Cheaper to Insure
Another aspect that won’t be taken into account when determining your car insurance policy is the correlation between the price paid for a vehicle and the rates on the insurance policy. While more expensive model cars may have features that cost more to insure, the fact is that cheaper cars can be heavy, rare, or have other characteristics that still drive up insurance rates. So, while certain aspects tied to a vehicle will correlate with rates, it cannot be assumed that the cheaper the car, the cheaper it is to insure.
Myth #3: Car Insurance Won’t Cover At-Fault Drivers
Another common misconception is that auto insurance policies won’t cover at-fault drivers. However, most car insurance policies which U.S. consumers buy will help to pay for damages, even if the driver was at fault. Still, it’s always important to drive as safely as possible to help avoid accidents.
Myth #4: That Speeding Tickets Will Automatically Increase Insurance Rates
While it’s true that a driver who has a history of reckless driving will pay more for insurance, your auto insurance provider will not necessarily automatically increase your rates if you get a ticket. For drivers that have an otherwise clean record, their premiums may not increase at all for minor violations. Further, many insurance policies include accident forgiveness, promising not to increase rates for your first minor accident.
To find out more information about auto insurance, contact Schechner Lifson Corporation. Discover how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.
Looking for information about other common insurance myths? See these articles on Disability Income Insurance Myths and Home Insurance Myths.