Purchasing car insurance is complicated enough. Between the gecko, the pile of cash with googly eyes, the caveman, and all the other mascots declaring hundreds of dollars in savings, it’s easy to get lost in a sea of misinformation and advertising. What exactly goes into determining how much it will cost to insure your vehicle? Are red cars more expensive?
To truly take the best care of your car and investments, it’s important to be educated and proactive. A little bit of research and preventative maintenance can go hundreds of miles and thousands of dollars further than putting a decision up to luck. For Tires to Automotive needs and Automotive Repair put your vehicle in the hands of a company can you trust. Do I need theft coverage if I drive an older car? Let’s look at some car insurance facts and debunk some myths.
Myth 1: The color of your car affects your rate.; Auto insurance companies use a number of factors to determine your premiums, but color isn’t one of them. Many companies won’t even ask you the color of your vehicle when preparing a quote.; The idea of the lead foot in the red convertible comes more from modern targeting than roadway experience.;
Fact 1: Car insurance companies base your premium on the year, make, model, body type, engine size and age of your vehicle. They also take into consideration safety features, how much it will take to repair or replace the vehicle, as well as your driving record. The risk factor of insuring a vehicle is directly related to the number of claims. Some makes and models generate more claims, and they’re rated accordingly.
Myth 2: If my friend borrows my car, their insurance will pay for any damages. Unless the individual has Broad Named Form Operator Insurance, a specialized form of insurance that cover the driver regardless of the vehicle, your insurance will be the one covering the damages. Most insurance policies are specific to a vehicle rather than an individual. ;Regardless of how the damage occurred, always seek out a trusted ASE Certified Auto Repair Centercto assure the highest quality repairs.
Fact 2: Your auto insurance rates will decrease as you age. According to Esurance, insurance companies charge inexperienced drivers higher rates because they’re more likely to file an auto insurance claim or get a speeding ticket.
Myth 3: Thieves prefer to steal new cars so my insurance rates will be lower if I buy used. According to the National Insurance Crime Bureau the top most stolen vehicle in 2010 were: 94’ Honda Accord, ’95 Honda Civic, ’91 Toyota Camry, ’99 Chevrolet pickup (full size), ’97 Ford F-150 pickup, ’04 Dodge Ram pickup, ’00 Dodge Caravan, ’94 Acura Integra, ’02 Ford Explorer and ’99 Ford Taurus. The reason? Many new vehicles are equipped with anti-theft equipment.; Your ’95 Honda Civic probably isn’t.
Fact 3: Your gender affects your rates. Males typically drive more than females. The more ground you cover, the higher your chances for accidents and insurance claims. Male drivers also tend to take more risks behind the wheel.; Remember your friend who was obsessed with Fast and Furious? You can thank him.
Sorting the fact from the fiction will help you make better, more informed decisions about your auto insurance policy.