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.

Don’t Fall Short on Car Maintenance

As we dig deeper into fall, it means one thing: Winter is just around the corner. Take time now to get your car ready for the bad weather to come. Otherwise, you could be stuck at home or, worse yet, along the roadside with a flat tire, a blown engine, a windshield you can’t see out of, or some other problem.

So before all the leaves are brown and the sky is gray, make sure you won’t have a problem with the following:

Tired of trouble

First, give your tires the eye test – or better yet, the coin test. Put a quarter into the grooves on several parts of your tires. If at least part of George Washington’s head is always obscured, you have more than an eighth of an inch of tread depth. Tires are considered legally worn out in most states when they’re down to one-sixteenth of an inch.
Now it’s time to check the air pressure of your tires. Here, there’s no eye test; the pressure will be really low if you can see it. Why does it matter? Heat can build up in underinflated tires and cause a blowout. An underinflated tire also will wear faster, and your gas mileage will suffer greatly. Tires tend to lose pressure when the weather cools.
You can find the car manufacturer’s suggested pressure on a sticker in your car door or in your owner’s manual. It’s possible the requirements will be different for front and back tires. You’ll need a tire gauge to measure it, and you should do it when the tires are cold. If the pressure is low, go to a gas station and add air. One thing to note – driving with overinflated tires also is dangerous.
Remember, when you’re checking tires, to include your spare. It won’t do you any good to put the spare on if it’s in bad shape.
Finally, rotate your tires if it’s time to do so – it will extend the life of the tires.

Oil things considered

Making sure you change your oil at regular intervals should always be top of mind. But there’s more to an oil change than changing oil. You’ll also want to check the levels of your brake fluid and, of course, your antifreeze.

Get all wiper about it

You’re heading into the season when you’ll need your windshield wipers. So change them to make sure your windshield stays clear of grime, snow and ice. While you’re at it, make sure you’ve got plenty of wiper fluid, too, and that it has a low freezing point.

Blinded by the lack of light

This is a good time to check to make sure your headlights, taillights, brake lights, signal lights, and flashers work property. As Yogi Berra said, “It gets late early out there.” In other words, you’ll likely be driving in the dusk and darkness more.
Check your horn as well, and make sure the heater/defroster is working properly heading into the season.

Power up

Check the battery terminals for problems, and check the battery itself to make sure it’s still good and strong. Chemical reactions that generate electricity are slower when the temperature falls, so it’s important that your battery is strong heading into winter.

Be prepared

Even if you take all these precautions, you could get caught in a jam as the weather gets colder. Review your emergency kit to make sure it has the proper supplies, or put one together if you don’t have one.
Here are some things it should include.

• Flares
• Boots
• Blankets
• Bottled water and high-energy snacks
• Jumper cables
• A jack and spare tire
• An ice scraper
• Flashlights
• A shovel
• A first aid kit
• Duct tape

There are other items you can include as they apply to your location or situation, such as medicines. But the important thing is to be prepared for the worst that can happen. That way, you can handle any smaller problems that occur along the way.

What Happens When You Make a Car Insurance Claim?

One of the many advantages of doing business with SafeAuto is that all of our car insurance claims are handled by our in-house adjusters. They make sure you have the answers you need when you need them. In short, it’s just a more efficient way of doing business.
We make sure that all of our car insurance claims are handled quickly by enlisting the help of independent appraisers. No matter where you are in the United States or Canada, we can have a professional appraiser available to see your vehicle fast. Once the damage has been appraised, the body shop of your choice can start the repairs immediately.
While of course speed and efficiency are important when processing your car insurance claim, we’re equally dedicated to containing costs and giving you the best possible value for your money. This is why SafeAuto Insurance aggressively investigates each car insurance claim to determine whether or not it’s fraudulent. By doing so, we’re able to keep our car insurance premiums as low as possible. And to anyone who lives on a strict budget, this means a lot.

If you ever wondered what happens when you make a car insurance claim, hopefully we were able to give you a better understanding with this blog post. We try hard to make the car insurance claim process as seamless as possible and have an entire team of dedicated associates working hard to make sure this happens.
If you need to file a car insurance claim, give us a call at 1-800-SafeAuto and one of our experienced representatives will help you through every step of the process. For more information on our rates, or for a free car insurance quote, visit us at our website at www.safeauto.com.
For an exact definition of a car insurance claim, visit the link below:
http://www.investopedia.com/terms/i/insurance_claim.asp

Gender gap opens over car cover costs

Figures published this week show a new gender divide has opened up over car insurance prices.
Young women have been hit with huge rises in the cost of motor cover this year.
At the same time, premiums for men aged between 17 and 20 have fallen dramatically.
The latest Confused.com/Towers Watson Car Insurance Price Index shows that women in this age group are now paying 9 per cent more than this time last year.
Men, on the other hand, have benefitted from price falls of almost 30 per cent.

Effects of law change

These contrasting fortunes have been blamed on a new law which has made it illegal for insurers to charge men and women different rates based solely on their gender.
Since last December, when the European Gender Directive legislation came into effect, insurers have been effectively equalising the premiums they charge to male and female motorists.
Until then, men – especially those under the age of 25 – had faced much higher insurance costs than women, as insurers’ own figures tended to show they had a much greater risk of being involved in accidents and making claims.

Ignoring the risks

But providers can no longer use this statistical evidence when setting premiums.
Instead, men’s and women’s insurance prices are being brought into line with each other, with the result that men benefit from falling costs while women face significantly higher premiums than before.
Across all age groups, the research found, premiums have fallen sharply over the past two years.
From a high of £858 in the middle of 2011, today’s typical annual premium is £652, a fall of almost a quarter.

Good news ‘not felt by all’

Gemma Stanbury, head of car insurance at Confused.com, said: "It’s great news for most motorists as their average premium is now £206 cheaper than it was two years ago.
"However, this good news isn’t felt by all as the most recent results from the Confused.com Car Insurance Index reveal that women have experienced the greatest increases to their car insurance premiums.
"As a result, women aged between 17 and 20 are now facing average prices of £1,862 for their car insurance.

Prices levelling out

"At the opposite end of the spectrum, their male counterparts are enjoying huge price decreases of 29.2 per cent as the industry attempts to level out car insurance prices."
The price falls for men mean their annual premiums have fallen from an average of £3,314 in 2012 to £2,345.
Young women have fared worse in some parts of the UK than others, the figures show.

Gender differences disappearing

Under-21s in Northern Ireland will now pay an average of £2,156 a year, up almost 15 per cent on a year ago, for example.
Across all age groups, the gender gap in motor premiums has almost vanished.
The average annual male premium is now £665, compared with £635 for women.
This £30 difference is dramatically less than the £112 gap recorded this time last year, when the typical male and female premiums were £807 and £695 respectively.

Car insurance costs fall by 24%

The cost of car insurance has fallen by almost a quarter from record highs two years ago, new research has found.
Millions of drivers are benefitting from the cheaper premiums that have resulted from a number of factors.

Benefits of pay-as-you-drive

These include greater take-up of pay-as-you-drive telematics insurance policies, as well as reduced costs associated with personal-injury claims and new rules on prices for men and women’s policies.
The Confused.com/Towers Watson Car Insurance Price Index shows that the average comprehensive premium between June and September this year was £652.
This is 24 per cent lower than the peak of £858 recorded in June 2011.

Contrast with inflation rate

Motor premiums have dropped 14 per cent in the past 12 months alone, the figures showed.
By way of contrast, over the past two years prices in the UK economy as measured by the Consumer Prices Index have risen by about 6 per cent.
Currently, the CPI is running at 2.7 per cent a year, according to the most recent official statistics.

Winners and losers

Some groups of motorists have fared considerably better than others, however, when it comes to price changes.
Those aged between 40 and 60 have seen typical premiums fall by more than 15 per cent in the last year, for example.
And young men in Scotland now face costs lower than at the start of 2007.
But the picture for many women who have only recently passed their driving test is not so rosy.

Young women face price hikes

Those aged between 17 and 20 have in fact seen their premiums rise by just over 9 per cent since this time last year, while their male counterparts face costs almost 30 per cent lower.
This is largely due to the effect of new rules over setting insurance prices according to gender.
Since last December, it has been against the law for providers to charge men and women different rates because of their gender.

Men ‘more risky’

In the past, men – especially those under the age of 25 – have faced much higher premiums because statistics suggested they have been more likely to be involved in accidents and make claims.
But following intervention by the European Union, insurers are no longer allowed to reflect this with higher premiums.
As a result, the gap between male and female premiums has been narrowing over recent months, which means cheaper rates for men but higher prices for women.

Black box benefits

Young people have been increasingly opting for a type of car insurance called telematics.
This involves a black-box measuring device being installed in the vehicle, with premiums set according to how sensibly the policyholder drives.
This is thought to have played a part in falling premiums, as is a recent crackdown by the Ministry of Justice on the fees that are paid by insurers when dealing with personal-injury claims.
Gemma Stanbury, head of car insurance at Confused.com, said: "In the last three months we’ve seen a significant reduction in car insurance prices across the board, seeing premiums drop by an average of 13.9 per cent year-on-year.

‘Welcome news’

"Falling car insurance premiums are welcome news for motorists who may well be feeling the pinch as a result of rising rates of inflation."
Stanbury added that drivers needed to be proactive to ensure they were feeling the full benefit of these premium falls.
This means checking which insurer offers the best rate.
She said: "We would recommend that motorists take advantage of these latest price drops, not just accept their renewal price."