Auto Insurance Myths Busted



The Color of a Car Affects the Premium 


The Government Decides the Standard Auto Insurance Rates 

The government does not decide the current vehicle insurance rates since the government has nothing to do with vehicle insurance. Various factors such as your driving record, your car type, your car’s condition and your age decide the amount of money you pay to insurance companies every year. 

As I Grow Older I Will Have To Pay More 

This is one of the most common auto insurance myths in the market. The truth is that people between the ages of 21 – 55 pay the lowest auto insurance where as people under the age of 21 and over the age of 55 pay higher vehicle insurance premiums. Till you grow to the age of 55 years old you do not have to pay high premiums but after reaching the age of 55 years if your vision is affected then you may have to pay higher premiums.

 All Car Modifications Increase the Premium 

This is another common myth that scares most car owners. The truth is that you will have to pay a higher premium for car modifications that enhance the beauty of your car or for modifications that enhance the speed of your car. By changing your seat covers or by installing safety devices your insurance rate does not increase. In fact many insurance companies give discounts to car owners who install safety features like automatic seatbelts, air bags and additional theft alarms. 

My Credit Score is the Only Factor That Affects my of Auto Insurance rates 

Your credit score is one of the factors that affect the amount of premium you pay but this is not the only factor. There are various other factors that decide how much money you pay for insurance premiums every year. Some of the common factors include your gender, your age, your vision, your location, the condition of your car, your car’s make and the mileage you drive at. 

Comprehensive Coverage is not needed  

Comprehensive coverage may not be mandatory in many states but this coverage is definitely useful. Comprehensive coverage protects your own interests if your car is damaged during a natural calamity or if your car is hit by an animal. This cover also protects your interests if you car has been vandalized. Comprehensive coverage pays for repair and damage to cars so that the car owners do not feel the pinch when their car is damaged.