By Matt Rhoney
Car
insurance is a requirement that may be a hassle to deal with, but
will undoubtedly be a great help if you’re ever involved in a small
fender bender or a serious car accident. Unfortunately, choosing the
right car insurance can be tricky, particularly if you have some
preconceived notions about some factors that may affect the price of
your premium. Debunking some car insurance myths will help you
understand your premium and overall insurance policy a little better.
Myth
#1: The color of your car affects your car insurance
For
years, red cars have been getting a bad rap. While thrill seeking and
risky drivers may coincidentally drive red cars, your insurance
premiums are based on the way you drive rather than the color of your
vehicle. Additionally, according to Kelley Blue Book, it’s not the
color of your car that increases the price, but rather the type of
car you drive. The most expensive types of vehicles to insure include
large SUVs and sport cars. So, if you want to drive a red car go for
it, but make sure it’s a mid-size sedan with affordable insurance
premiums.
Myth #2: Smaller cars are cheaper to insure
In theory, this would
seem true, especially since mid-size sedans have some of the most
affordable insurance premiums. Unfortunately, a smallcar can have an expensive premium
since it depends on the type of coverage. For example, for collision
and comprehensive coverage on a smaller car may be more expensive
since smaller vehicles typically sustain more damage in an accident
and are more like of being “totaled” in a collision.
Myth #3: “No fault insurance” describes an accident that is not the policy-holder’s fault
No-fault
insurance means that your insurance company pays for any of your
injury-related bills, despite who is actually at fault. Similarly,
according to Marasco& Nesselbush,
LLP, drivers who may be partially at fault for the accident may still
be eligible for some post-accident compensation.
Myth
#4: Older drivers are expensive to insure
As
some drivers age, the quality of their driving may decrease (making
them “riskier” drivers), but that’s not always the case. For
many drivers, over the age of 55, insurance rates may decrease
if the senior aged drivers successfully complete an defensive driving
course. Some insurance companies may offer discounts that may add up
to 10 percent for 3 years. Additionally, senior citizen drivers may
get discounted rates if they drive less due to retirement or if no
longer working full-time.
Myth #5: Your insurance coverage takes care of losses like vandalism or natural disasters
Many
drivers with insurance assume that if they have car insurance all
types of damages are covered. Unfortunately, car insurance doesn’t
work that way. Liability insurance covers you if you hurt someone or
damage their property, but comprehensive and collision coverage
protects your vehicle (comprehensive and collision is optional
coverage). If you are worried about vandalism or freak accidents
involving a falling tree, you want to get comprehensive coverage. If
you want to be covered for damage to your vehicle caused from a
collision with another vehicle or object, you want to make sure you
have collision coverage.Images: 1. Axion23/Flickr, "Red Bugatti Veyron from Symbolic Motors; CC BY 2.0; 2. Morgan Shepherd, US-PD; 3. Justin1569, "A tornado approaching Elie, Manitoba", CC BY-SA 3.0
