In most countries around the world, car insurance is a mandatory and messy web of legal speak that car owners have to disentangle before they can burn some rubber on the road. That is too bad, because while it can be somewhat convoluted (as any system of technical insurance or bureaucracy can be), it is made more complicated in no small part thanks to some common myths that have been perpetuated.
For the sake of all current and future drivers around the globe, let us hazard a chance at killing some of these myths for good!
Myth: Red cars cost more to insure
This is simply not the case. Yes, red cars may cost more because they tend to rack up more speeding tickets by virtue of the fact that they more easily catch a cop’s eye when they go by (and look faster when they do, whether or not you are speeding). But as far as the insurance company is concerned, the only factors they consider are your car’s make, model, body type, age, engine size, sticker price, repair cost, safety record, popularity and chance of specific model getting stolen, driver’s age, driving record, and credit history.
Myth: Unreported accidents keep your rates from going up
It is not only questionably legal, but untrue that not filing a claim with your car insurance company keeps your rates from going up. That is because in an accident with another driver, that party may file a claim for damages or injuries, which is then seen by your insurance company. Either this event, or receiving a ticket due to a collision (which might appear on your driving record, as well) could result in an increased premium.
Myth: The cost of premiums go up with age
Because older drivers are statistically more likely to get into accidents, the thought process is that insurance companies jack up the insurance rates of these drivers. In fact, if drivers over 55 can pass a safe driving course, they are typically offered reduced driving rates if they meet a number of other requirements to qualify.
Myth: Buying from a dedicated agent guaranties you the best rates
Some people believe that the best way to get as low of a rate as possible is to buy through an agent who works exclusively in car insurance. The fact is that doing comparisons from a number of different sources, including different insurance agencies and even online companies, you are likely to find the best price among the bunch. For instance, if you are looking for van insurance, something independent like van finance from Vansdirect who deals with many highly-rated insurance companies might be a better bet over a dedicated car agent.
Myth: All insurance covers car theft and vandalism
Most insurance covers a degree of damages incurred by collision, hence the name collision coverage. Yet, if you are looking to be covered for vandalism and theft and everything in between, read the fine line of the comprehensive plans on offer. This is going to be something you will have to request additional coverage for, so just be aware of what your options are.