Just like in many other industries, there are plenty of myths out there when it comes to purchasing car insurance. Because it is such a complex task, and because there are so many options involved in finding the insurance policy that is right for you, it is no wonder that there is lots of misinformation running around. Thankfully, there are some experts out there, such as the Insurance Information Institute, which can help in uncovering these myths.
Ultimately knowing the truth from the aforementioned misinformation is vital for consumers who are shopping for insurance, which is why we take the time to tackle the following five common myths regarding car insurance. Once you know what is real and what is not, you will be able to make a more educated choice when it comes to insuring your vehicle. So, without further adieu, here are the five most common myths that you don’t need to worry about when shopping for insurance.
Insurance Myth 1 – Older Drivers Pay More
While you might think that older drivers would pay more for their auto insurance based on the fact that they may have slower reaction time and are involved in more accidents than middle aged drivers, you would be wrong. In fact, it is often the exact opposite, especially if these older drivers take a defensive driving course that is approved by their insurance company.
Mature drivers can also get discounts simply because they don’t work and they aren’t driving as much as they used to, causing their overall insurance costs to go down with age, rather than up.
Insurance Myth 2 – Red Cars Cost More
A lot of people think that those who own red cars are more aggressive and get into more accidents than people who own cars of different colors. The facts behind this idea, however, are nonexistent. Most insurance companies will actually tell you that the color of the vehicle doesn’t matter, and most law enforcement agencies will state the same thing.
While color doesn’t matter, the same cannot be said for the type of vehicle, which is, perhaps, where this myth came from. There is a statistical correlation between the color of a vehicle and the type, which can often lead to the suspicion that it is the color that matters. But rest assured, if you own a red car, you are paying no more than someone with a different color of the same make and model.
Insurance Myth 3 – Insurance for Soldiers Costs More
Some people might tell you that soldiers pay more for car insurance, but this myth is completely unfounded and has no basis anywhere. It is uncertain where this myth came from, but the Insurance Information Institute and many insurance companies themselves will be quick to tell you about all of the potential discounts that members of the military can qualify for and what kind of discounts their families can qualify for.
Military members and their families will often qualify for plenty of discounts in many different industries, and the car insurance industry is no different, so make sure, if you fall into this category, that you check with your company to see what discounts are available to you.
Insurance Myth 4 – Insurance Coverage Extends to Business Use
If you are self employed, and choose to use your vehicle for business purposes, you should realize that your vehicle insurance policy will probably not cover you if you should get into an accident. For example, if you are making a delivery or visiting a client, and you get into an accident, you might expect your claims to be denied. Make sure, if you use your vehicle for business, that you have the proper insurance coverage for business use.
Insurance Myth 5 – You Insurance Will Cover All Damage to Your Car
Some people don’t quite understand what they are getting when they purchase insurance. For this reason, it is vital that you look into what your policy covers so that you don’t end up with a broken car and no recourse. While the state you live in will most likely require you to have liability insurance, you should realize that this type of insurance only covers damage done to another person’s car. If you want insurance to cover damage to your vehicle, you should get comprehensive and collision coverage as well.
About the Author: Mandy Koler has many years of experience in the car insurance industry. She specializes in working with consumers one on one to help them find affordable policies by maintaining a blog, freecarinsurancequotes.org, where anyone can get car insurance quotes online without having to leave their living room!