You might have heard that red vehicles cost more to insure, or that buying bigger vehicles automatically results in lower premiums. While these car insurance myths are mostly harmless, others can cause drivers to overpay for coverage or leave you paying for accidents out of your own pocket. Learning the facts about auto insurance misconceptions will help you find the coverage you need at the best possible price.

5 Common Misconceptions About Car Insurance

1. Older Drivers Pay More for Insurance

Despite the stereotype of a confused elderly driver causing serious accidents, insurance companies know that younger drivers are responsible for more collisions. In many states, older drivers may even be eligible for special discounts on top of the lower premiums that come with age and a clean driving record.

2. The Color of Your Car Affects the Cost

The idea that red cars cost more to insure is an urban myth, no matter how often it’s repeated. While insurance companies do factor a wide range of variables when calculating premiums, vehicle color doesn’t affect your coverage costs.

3. The Driver’s Insurance Will Pay for Damages

Car insurance typically follows the vehicle, not the driver, so you may still be responsible if a friend causes an accident while driving your car. The coverage might also be lower if someone else is behind the wheel, which could leave you paying out of pocket.

4. Your Credit Doesn’t Affect Your Premiums

It may seem unfair, but insurance companies have found a well-documented link between low credit ratings and liability claims. Fortunately, this does mean that working on your credit rating can help reduce your auto insurance costs, along with all the other benefits.

5. Expensive Vehicles Cost More to Insure

While this might seem obvious, the reality is more complicated. Rather than focusing on the sales price, car insurance companies concentrate on the loss history of a certain vehicle, which includes the frequency of accidents and the cost of repairs. For example, a mid-priced sports car can cost more to repair than a more expensive SUV, which would probably result in higher premiums.
 

With over 20 years of experience serving drivers throughout High Point, NC, Dewey Beckner with Allstate Insurance Companies is committed to providing every client with exceptional service and detailed advice. As an agent with one of the nation’s leading auto insurance carriers, he has the resources and expertise to ensure you have all the protection you need. Visit him online or call (336) 884-5636 to request your free quote today.