Auto insurance is essential as it protects you from financial ruin if you do accidentally cause an accident. Of course, it’s also a legal requirement.
But, not all insurance policies are created equal. Before you commit to one you should compare car insurance to ensure you’re getting the best deal and the insurance offers all the protection you need.
When you start looking for auto insurance you may be worried about how your cost is going to go up because you have a specific car or color of the vehicle. In many cases, these are simply unfounded myths.
Here are 5 of the most common auto insurance myths:
- Red Cars Cost More
It used to be that car insurance was rated on the color of the car as specific colored cars were more likely to be involved in crashes.
However, car insurance data has improved and confirms there is no data to back up red car drivers go faster, cause more accidents, or get more speeding tickets.
The data available now allows insurance companies to look at the type of driver, the vehicle, specifically engine size and popularity with thieves, that information helps get the right premium. Driving a red car makes no difference to the cost of your insurance.
- Older Drivers Pay More
Life insurance is more expensive as you get older because it is more likely that you’ll die. The same is true of health insurance as you’re more likely to need to claim.
But, older drivers tend to be more careful and are less likely to cause an accident. Insurers back this up with accident prevention courses that reduce the premium further once they’ve been completed.
- Insurance Covers Damage To Your Car
Basic insurance won’t cover the damage caused to your own car. You can cover this by upgrading the policy but it’s not a legal requirement. Your basic policy makes sure that, if the accident is your fault, all other parties are not out of pocket.
It pays to get full coverage and may be necessary if you have a car on finance. But, the basic coverage doesn’t cover damage to your car.
- Military Personnel Pay More
The myth says that military personnel pays more for their insurance but the opposite is actually true. Military personnel can supply rank and length of service, with proof, and get a discount
Family members of military personnel can also obtain a discount, making it worth mentioning.
- Business Cover Is Included
Many people believe that business cover is included in their insurance contracts. In fact, it isn’t. This is particularly relevant for young drivers that often take delivery jobs, such as Pizza delivery, or self-employed people.
The standard car insurance doesn’t cover business use and undertaking business driving can invalidate your policy. This could lead to an expensive accident.
In short, if you’re driving for a business you need to make sure that you have the right insurance. Being aware of these myths can help you to get the best deal and even choose the right car!