Fact or Fiction: Auto Insurance Edition
Updated: Sep 20, 2020
There are so many factors to consider when purchasing car insurance. There are also a lot of myths out there. We want to make sure that we are getting the best deal for the best coverage. With all of the other bills and necessities piling up, it is hard to remember to take the time to compare your insurance rates with competitors. Luckily, Insuravita makes this process easier than ever. We want you to know the facts from the fiction and all of your options for your coverage. Read on to learn more about the most common misconceptions and truths about car insurance.
Auto Insurance Myths
You may have heard that buying a new bright red car can make your monthly insurance go up. I have even heard that you are more at risk of getting a traffic ticket if your car is red. This would also cause your insurance rates to change. So is that true? Can the color of your car affect your coverage and monthly fees? Technically, the make and model of your car may statistically have higher reports of accidents and high-risk tickets, but this is not necessarily saying that it will happen. There is no risk or warning when you buy a bright yellow or red car claiming this will happen. Most of the features that are determining your monthly rate and level of coverage are based on the safety features of the car. For example, airbags, crash ratings, back up cameras, etc. The safer the car the
less likely that the insurance company is going to have to cover a claim.
Borrowing a Car
Something that is very common in congested city environments is borrowing a friend or family member’s vehicle. More and more people are relying on public transportation, carpool, and rideshare services, as car prices rise and traffic increases. So what happens if you let your friend or even a close friend borrow your car and they get in a fender bender? This is a tough situation, but you have to be aware of the risks that come with the decision. All damages to the car or others will have to be covered by your policy, as you are the car owner and policyholder for the vehicle. Make sure to read your policy carefully before allowing someone else to drive your vehicle.
Car Value
Another thing that comes up a lot is the value of the car. So you enjoy the finer things in life and like to drive a sports car around town. Will, it cost you more to insure the car? This answer is two-fold. First, the total cost of the car and how much it would cost to replace or repair definitely plays a factor in your insurance rate. However, there are other things that contribute to the cost of insurance. One of these things being the likelihood that your car is to be damaged or stolen. Theoretically speaking the more expensive the car the more likely that theft prevention is a part of the vehicle. Theft prevention means that the insurance company will not have to pay to replace the stolen vehicle, and can give you a more affordable monthly priced policy. Make sure you take these things into consideration when purchasing a car and policy.