Red Cars And Other Auto Insurance Myths

Red Cars And Other Auto Insurance Myths

As the owner of a red car many have heard the common parable or myth about red automobiles right after purchasing it. Red cars get more speeding tickets, and have higher car insurance quotes and costs. After telling my insurer’s agent all the details she asked about the new automobile so I could get insurance, I asked whether she wished to know what color it is. No, she told me, the insurer does not have a check-box for the car color and does not have to know the color.

I was relieved. It is not the vehicle, it is the kind of person who purchases a red car. Red sports automobiles doubtless do attract people who drive fast, but a red automobile does not stand out simply for its color. It might make you more conspicuous when you drive twenty miles an hour over the road limit, but that is about it.

The real difference is in the driver. Is it a twenty year old male that is getting a red Camaro or is it senior drivers getting a red Audi? Car color does not matter. It is a myth.

Here are five other cheap auto insurance parables or facts. Take the quiz to determine whether you know the difference.

- Having optional collision and comprehensive coverage will get me a new car if I get into a crash?

This is false. Having both is a great idea, but because you are laying out more in premiums does not imply your insurance company will obtain you a new automobile if yours crashes. The car’s worth is founded upon how old it is and how much it has depreciated.

Insurance brokers will attempt to have the car fixed if fixing it costs less than the value of the vehicle. Most people do not see the cash. It is going direct to the car repair shop.

- Vehicle insurance premiums can be paid late because there is a grace period therefore I still have coverage.

False! Insurance policies do not work like credit cards where you have a grace period of no interest. If you are late making an insurance payment, there is not any introductory period and the insurance protection will lapse. Coverage is reinstated when payment arrives so it is paramount to be sure to pay your insurance premiums on time.

There never has, nor will be such a thing as a “grace period” for insurance premiums. You have either paid it on time or you have not.

- Little vehicles get into less crashes because they have better navigation and maneuverability.

Again, this is false. They could be quick, but they also higher crash or collision losses. Little cars cannot take collisions as well as larger vehicles. Small vehicles have higher losses than bigger automobiles, which seems sensible if you have ever seen a little vehicle looking like an accordion after a crash while bigger cars, in some instances, appear to have not been in a car accident.

- If my automobile is totaled, the vehicle insurance firm will not pay off my loan

This is true. Many people may believe differently, but how much you paid for the auto when it was new has no bearing on how much it’s worth later on.

The loan may be for at least the value of the totaled vehicle, leaving the owner “upside down” on the loan for a car that is now worth less to the insurer. These days, many lending establishments will loan up to ninety percent loan to value, and other have high interest rates, but the insurer isn’t paying for the total loss.

- No-fault auto insurance means it is not your fault.

This is a huge misconception is false. The laws change by state but states with no-fault auto insurance usually need your insurance firm to pay for hospital costs and loss of salary for injuries irrespective of who is responsible.