Auto insurance is a mandatory requirement for driving a vehicle. These car insurance myths about rate of insurance can help you in selecting the best policy.
This unavoidable policy needed to drive an automobile on road in most of the country. When purchasing car insurance, it’s necessary to understand the various factors that can affect cost & coverage of your car insurance premiums.
Unfortunately, several myths & misconceptions are also prevalent in the society. These are even found to exceed the authentic facts in terms of popularity among consumers.
These commonly circulated myths & misconceptions can prevent you from buying the right car insurance cover for your needs. Here are 10 surprising car insurance myths about rate of insurance:
(1) Color Of Your Car Will Determine Rate Of Auto Insurance
It is one of the most surprising & commonly circulated car insurance myths about rate of insurance prevalent among car drivers. Generally, it is believed that bright red cars are expensive to insure. It is because they are often linked to aggressive driving or speeding.
But, actually the rate of motor insurance is unaffected by the color of car such as red, green or purple. Generally, the price of policy coverage is mainly affected by the type of automobile selected by you for driving.
Some of the major factors that are responsible for calculating the cost of insurance premiums include make, model, body type, engine size, age of vehicle, driver’s age, driving record, and credit history of driver.
Your premiums calculations can also be affected by car’s sticker price, repairing costs, overall safety record, & likelihood of theft.
Several insurers offer discounted premiums for installing daytime running lights, anti-theft devices, insuring multiple vehicles, completing driver education courses, maintaining good student record, as well as purchasing of auto & home insurance packages together.
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