We all know how confusing buying an auto insurance policy can be. Especially when there are a bunch of crazy myths that add to the confusion. But don’t worry, Effective Coverage is here to dispel the most common car insurance myths.
1. Car color plays a big role in rates
Ever notice how people always associate bad things with bright red vehicles? While this color maybe eye-catching, it does not scream “high auto insurance rates.” Just think for a moment when the last time was that your agent asked you for the color of your vehicle. Many only ask for the year, make, model, mileage, and driving distance. You could have a hot pink car with zebra stripes all over it and the auto insurance agent could care less.
Now cherry red cars do, however, attract the eyes of the police, and those tickets will make rates go up so perhaps there is a tiny correlation after all.
2. Newer cars increase the likelihood of theft
Auto theft is a key player in auto insurance rates, but the newest cars aren’t necessarily the ones stolen most often. Every year, new statistics come out about the top ten most stolen vehicles, and they are often not the years’ latest and greatest. Some factors why newer cars aren’t stolen as often include anti theft systems getting better on a yearly basis, older cars can sometimes be more valuable, and the abundance of older models. Just because you own a new car does not mean your auto insurance rate will be sky high due to auto thefts.
3. Cars are worth the purchase price paid
Where this myth came about is a mystery. A vehicle is almost never worth what you paid for it. New cars instantly lose value the moment they are driven off the car lot. The same is true for any used car purchased from an auto dealer. Cars are almost never worth the money people shell out for them.
4. Credit scores don’t count
For many, the sad truth is this used to be true. Credit scores are being used more often now by the auto insurance industry. Legislation has passed that allows companies to base your auto insurance rates on your credit score. That means that bankruptcy not only means higher interest rates on loans, but it can also mean sky-high auto insurance rates.
Figuring out myth from fact is a rough process. When all else fails, call an auto insurance specialist at (800)892-4308 or click to get covered - whether you need renters insurance quotes online or coverage anywhere else!
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