5 of the Biggest Myths About Car Insurance

We’ve all heard so many myths when it comes to car insurance. In any conversation, there are always several different opinions being thrown around when it comes to what is covered, what affects car insurance, etc.

The problem is, how do you know which are facts and which are myths? With some of these things, you just have to do your research. But let me help you get started.

Here are 5 of the biggest myths about car insurance:

1. It matters what color your car is.

This is one of the biggest myths when it comes to car insurance! We’ve all heard it: “If you have a red car, you’ll have to pay more for your car insurance.” Other factors like speeding, tickets, etc are what really is going to drive your rates up. And some factors about your actual car do matter: like the make/model, year, etc. Focus on those factors, not the color of your car, when you’re worried about your car insurance rates.

2. Older cars aren’t stolen often.

This is another completely untrue myth. In fact, it’s actually the exact opposite. When it comes to car insurance, sure you might want to avoid a car that is often the target of theft. But if that is the case, then it’s actually the older cars that you’ll want to stay away from! Older cars are considered easier to steal than newer cars. So, the National Insurance Crime Bureau has reported that older cars are targeted more than newer cars. So definitely don’t make the mistake of thinking your older car is safe from theft.

car insurance

Photo source: http://www.flickr.com/photos/52563324@N05/7991988966/

3. Theft, environmental damage, and vandalization are always covered.

Wrong again. These types of things aren’t covered by the mandatory car insurance that we all must carry. The types of insurance that cover these type of occurrences are optional (unless you have a lease, etc), so it is up to you to make sure you have this type of coverage.

4. A rental car is automatically covered.

Again, not necessarily true. Rental car reimbursement is not covered under most basic car insurance policies. It is something that you have to have added to your insurance. But, it is a pretty affordable add on, so keep that in mind. But, each car insurance company’s rental car reimbursement policy and coverage is a little bit different, so make sure you understand the coverage and limits if and when you do add this onto your policy.

5. My credit score won’t affect my rate.

This is yet another one that might not necessarily be true. Some car insurance companies check your credit, some don’t. For many car insurance companies, they feel that having a low credit score shows that you might not be great at paying your bills. So if you’re not good at paying your other bills, they think that odds are you may have troubles paying your car insurance bill. So, some car insurance companies do check your credit when you are applying for car insurance with them (some even are now checking it when you are wanting to renew or make a change to your policy). So, if you have a low credit score, keep this in mind when you are shopping for (or changing or renewing) car insurance.

Nicole is a guest writer for cheapinsurance.com. She writes about cheap car insurance.

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