Car insurance rates vary from person to person based on vehicle make, model and year, driving record, age and a variety of other factors. Because of the inconsistency in coverage, people are often confused when it comes to actually understanding the policies most insurance companies offer. Consequently there are numerous misconceptions regarding car insurance and what commonly affects rates. Myths are frequently circulating among the general public, leaving many to feel hopeless and confused. Those who are most confused are typically people who are new drivers and are unfamiliar with the basics of insurance coverage. Some popular car insurance myths and facts are mentioned below and hopefully by debunking these common misconceptions, you can achieve a clearer understanding of what car insurance coverage is all about.
Myth: Vehicle color affects insurance costs
One of the most popular myths regarding car insurance is that color affects costs. People commonly believe that red cars or yellow cars are most expensive to insure. The truth is that, the color of your car does not matter at all. Insurance companies may take into account the car type, body, engine and model, but not the color. On the other hand, if you are speeding and driving recklessly, cops may more frequently pull you over since you are more high profile than others on the road. It is a fact, however that if you have more tickets and subsequently a worse driving record, you can expect your rates to rise.
Myth: State controlled coverage is all you need
People frequently believe that state controlled insurance is enough to cover all damages. Different schemes are needed for different purposes. Liability coverage and collision coverage are both needed for compensation from others. Comprehensive coverage should be taken for the protection of your car from riots, robbery and fire.
Myth: People only steal new cars
Most people believe that thieves steal only new cars, but the truth is, thieves are just as likely to steal old cars as well. It is not just the car that is under the radar of a thief. Body parts, machinery and sound systems are as valuable as the car itself. A comprehensive insurance plan would help to cover the damage from theft of a vehicle.
Myth: The car insurance company will compensate without any conditions
There is a false belief among people that their insurance company will compensate them without any conditions, in the event of an accident. This is sadly not the case. A lot depends on the other person’s insurance as well. The driver at fault must have a coverage policy. So it is better to have uninsured vehicle coverage.
Myth: Car insurance always covers rental car costs
A widespread myth is that the insurance company will pay for a rental car when an accident occurs. Insurance companies will pay for a rental car only if it is part of your coverage. Collision coverage and comprehensive coverage does not include the obtainment of a rental car. If this is something that is important to you, make sure you voice this to your insurance agent so that you can have this included into your premium costs. Also look in to the popular no deposit car insurance option before you commit to an insurance policy that requires a large sum of money.
Myths like these exist everywhere. It is better to understand the falsity of these myths before making a wise decision about your coverage needs.
Sarah Williams is a contributing writer for CheapestCarInsurance.org.