It is pretty common to think about getting our car insurance as soon as we purchase it. Some might even buy a coverage plan at the same time we give the down payment. However, there are some common car insurance myths and misconceptions we need to be aware of. This in order to make sure we make an informed decision when we decide to go for the best plan for us.
Most of us have heard these myths, and even though some of them sound perfectly understandable and logic, others might sound more like a joke than anything else. However, there are still some of us who would think the color of our car can determine our rates, that elderly drivers would pay more than younger ones for insurance, and that filing claims will affect how much we pay. Whether these beliefs happen to be true or not is something else.
The Color Determines Your Rates
We’ve all heard this one: red cars get higher insurance rates than white cars, this because red car owners are more likely to be pulled over by traffic police, and more often than not are subject to speeding tickets and car crashes.
There are many urban legends regarding the relation between car color and speeding tickets and accidents. Thankfully, insurance companies do not assess their primes and rates based on urban legends but based on statistics and facts. For car insurance, companies will consider your car’s make, model, engine, the age of the vehicle, market value, along with some other factors, from which the color of the car is not one to be concerned.
The Older You Get, The More You Pay
This is one of those insurance myths that seems to have more face value than others. As people grow old, we start experiencing more health problems. This might include a limited vision, slower reflexes, and even our cognitive skills becoming less refined than during our youth. Such limitations have an impact on how likely we are to find ourselves involved or causing a car crash.
As we grow old, we become more experienced drivers, too, and several companies do consider experience when assessing coverage rates. Completing safe driving courses will also help us reduce our rates, and it is usually older people who complete such courses.
Another point to take into account is that people over 60 are usually driving less than they used to. This might be due to retirement, health situations, or just because family members enjoy driving them places instead. As a result, elders spend less time behind the wheel, significantly reducing the chances of causing a car accident.
Accident Claims Make Your Rates Go Up
Another common misconception is that filing accident claims will undoubtedly impact your monthly payments. So, regardless of you being at fault or not, each claim you file will make your rates go up. Thus, the only way to avoid a continuous increase is by not submitting claims unless it is absolutely necessary. Plus, you might be eligible for a No Claims Bonus with your insurance company. So, keeping accidents for yourself to handle might not be worth the trouble.
This one might be a bit of fact and a bit of fiction altogether. It is true that an incident claim might have an impact on your rates. However, insurance companies consider the severity of the incident and the frequency of your claims to determine your premiums. Whether you were at fault or not will also have an impact on your rates, and some companies might even have a less strict policy regarding no-fault or small claims, which would help you keep your rates more affordable.