With so many “facts” about car insurance circulating today, it can be hard to separate truth from fiction. Below we debunk five of the most common car insurance myths to make it easier to find the perfect policy!
Myth #1: Car color affects insurance rates.
We’ve all heard it before – “buying a red car will make your insurance rates higher!” – but while there are quite a few factors that insurance companies consider when determining premiums, color is not one of them.
The important things to consider are year, make, model, body style, and age of your vehicle, along with your driving record and the number of drivers listed on your policy.
Myth #2: One ticket will cause insurance rates to skyrocket.
Of course you want to avoid traffic violations and drive safely — but one ticket on your record does not automatically mean your insurance rates are going to skyrocket through the roof. If you have an otherwise clean record, your insurance premiums should only show a slight increase for a minor accident or ticket.
Additionally, some providers offer accident forgiveness for their policies if you’re worried about rates increasing in the event of a fender bender or collision.
Myth #3: Car insurance rates automatically show a large increase after one claim.
There are several parts and pieces that go into insurance rates, and many drivers believe that filing one claim automatically means their insurance rates will see a huge jump up in price. But it turns out that overall driver history is a huge component that affects rates — if you have a clean record and get into a minor collision, your rates should only increase slightly even if you are at fault.
And believe it or not, most providers won’t raise your rates based on an unlucky accident caused by another driver.
Myth #4: Car insurance follows the driver, not the car.
In many states, car insurance follows the car, not the driver. What this means is that if you give someone permission to drive your vehicle and they get in a crash, he or she is covered primarily by your insurance. If the damages exceed your coverage, their insurance may be used as a secondary means of coverage.
Myth #5: Insurance premiums rise as you age.
It’s no secret that as you get older, your eyesight might deteriorate and your reaction time slows down. Many believe that this means seniors also have higher insurance rates — but these changes usually don’t happen until you reach the age of 70. Most insurance companies put more weight on experience than the age of the driver!
If you are over the age of 70 and see an increase in your payments, though, be sure to call your insurance provider. There are many ways seniors can save on their rates.
Lindow Insurance is here for you
It’s important to be skeptical of the information you might hear from family and friends about insurance rates. Our team here at Lindow Insurance is here to help clear any fusion — knowing what your auto policy covers saves you money in the long run, and that’s our goal. Be sure to give us a call if any of these questions ever come up!