4 Car Insurance Myths About Newly Launched Vehicles

common car insurance myths or misconceptions. Happy family driving a newly launched car

Buying a car for your personal or business needs is perhaps one of the biggest financial decisions. It requires proper planning to meet your needs.

You can purchase any automobile of your own choice depending on person budget. However, it should also be accompanied with the most appropriate policy coverage.

Your policy should cover the maximum amount of possible risks at an affordable insurance premium. It is possible only if you understand a given policy quickly without being affected from common car insurance myths or misconceptions. Here are 4 auto insurance myths about newly launched vehicles:

(1) Newer Cars Are Always More Expensive To Insure

It is one of the most popular car insurance myths or misconceptions about newly launched vehicles. People often believe that newer cars are always more expensive to insure as compared to older cars.

But, actually some newer cars are even less expensive to insure than old ones. It is because of enhanced security features installed in them.

Generally, the rate of insurance is dependent on year, make & model of the automobile. You are advised to consider such things while choosing your policy for you. You should not forget to shop around prior to buying the policy.

[Read Also: 10 Ridiculous Auto Insurance Myths About Road Accidents]

(2) Small & Less Expensive Cars Are Cheaper To Insure

It is one of the most ridiculous yet common car insurance myths or misconceptions about new vehicles. People often believe that small & less expensive cars are always cheaper to insure as compared to large & expensive cars. But, actually your rate of insurance is greatly dependent on the type of coverage.

Generally, rate of premium especially for collision & comprehensive coverage is higher for small & less expensive car. It is due to higher risk of being “totaled” in a collision as compared to large & expensive cars that can resist small accidents quite easily.

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