The topic of car insurance can be complicated and confusing for a lot of us. You hear different ideas (sometimes conflicting) from many different sources, including friends, relatives, and the internet. The basis for a lot of this information is simply untrue — complete myths. So, to help you out, we have listed four of the most common beliefs about car insurance that are out there, presented as facts…but are completely wrong.
The top of this list…The color of a car affects its insurance rates. Absolutely untrue! Somewhere along the way people got this crazy idea that certain cars or specific colors were targeted more often for speeding by police, which in turn raised insurance rates on those colored cars. That is not true at all. The myth probably got started because sports cars are typically seen in red and yellow, and thus people assumed those colors were more at risk and thus had higher rates. The fact of the matter is that sports cars have higher rates, period, but the color has nothing to do with it.
All new cars are automatically added to the insurance plan that is already made in a person’s name. False! Car insurance companies do not have a crystal ball, so you will need to inform them when you purchase a new car. Be aware…in many states, a car cannot be registered without insurance, so you must still call your insurance to get the car covered.
Males under 25 years old pay more for car insurance, no matter what! This one is technically a myth, but with some truth behind it. Males in the 25 year old and under bracket have a tendency to be more dangerous drivers, so their insurance rates can indeed be higher. However, this group as a whole does not penalize the individual driver. A driver with insurance for several years and a clean record will pay less than someone else with a blemished record, period. It depends on the actions of the driver, not only their age. Each person is considered on an individual basis as far as insurance companies are concerned.
Minimum coverage is good enough and will cover theft or other issues. BIIIIG MYTH!!
Not only is this thinking completely untrue, it can also be costly to you. By definition, minimum coverage only covers accidents while driving, it does not cover theft, vandalism, or acts of God. In order to be safeguarded against theft, vandalism, or a random freakish accident, full (comprehensive) coverage is necessary. Even then it is wise for you to read through your insurance contract to see what is and what is not covered under the comprehensive plan.
These were just some of the top myths out there right now regarding how car insurance functions. The best advice we can give you is not only to shop around for the best rates, but also to ask questions about the full nature of the coverage you’ll be buying. Different companies have different definitions of “minimum” and “full coverage”. Be aware and know what you are getting yourself into. Don’t be intimidated from asking the insurance companies questions you want answers to…Remember it’s your money!
Home of the “Pete Solis Collision Satisfaction Guarantee”. At Pete Solis Collision Center, we are El Paso’s Auto Body Shop! With over 47 years of experience behind us, we are the top choice for bodywork, paint, and more. We are the home to ICAR certified professional body shop technicians, as well as quality Sherwin Williams Automotive Finishes. Pete Solis Collision Center is located at 1434 Lomaland Dr. in El Paso, Texas. Give us a call today at (915) 599-8666. We are open Monday through Friday from 8:00am to 5:00pm.