While it is pretty common to think about getting our car insured as soon as we purchase it, or even buy a coverage plan at the same time we give the down payment, there are some common myths and misconceptions surrounding car insurance we need to be aware of to make sure we make an informed decision when we decide to go for the best plan for us.
Most of us have heard these myths, and even though some of them sound perfectly understandable and logic, others might sound more like a joke than anything else. However, there are still some of us who would think the color of our car can determine our rates, that elderly drivers would pay more than younger ones for insurance, and that filing claims will affect how much we pay. Whether these beliefs happen to be true or not is something else.
The Color Determines Your Rates
We’ve all heard this one: red cars get higher insurance rates than white cars, this because red car owners are more likely to be pulled over by traffic police, and more often than not are subject to speeding tickets and car crashes.
There are many urban legends regarding the relation between car color and speeding tickets and accidents. Thankfully, insurance companies do not assess their primes and rates based on urban legends but based on statistics and facts. For car insurance, companies will consider your car’s make, model, engine, age of vehicle, market value, along with some other factors, from which the color of the car is not one to be concerned.
The Older You Get, The More You Pay
This is one of those insurance myths that seems to have more face value than others. It is known that, as people grow old, we start experiencing more health problems such as limited vision, slower reflexes, and even our cognitive skills become less refined than when in our sharper years. Such limitations have an impact on how likely we are to find ourselves involved in a car crash, or maybe even causing it.
As we grow old, we become more experienced drivers, too, and several companies do consider experience when assessing coverage rates. Completing safe driving courses will also help us reduce our rates, and it is usually older people who complete such courses.
Another point to take into account is that people over 60 are usually driving less than they used to, whether it is because of retirement, health situations, or just because family members enjoy driving them places instead. This results in elders spending less time behind the wheel, significantly reducing the chances of causing a car accident, along with their insurance rates.
Accident Claims Make Your Rates Go Up
Another common misconception is that filing accident claims will undoubtedly impact your monthly payments, and regardless of being at fault or not, each claim you file will make your rates go up, and the only way to avoid a continuous increase is by not submitting a claim unless it is absolutely necessary. Plus, you might be eligible for a No Claims Bonus with your insurance company, and keeping accidents for yourself to handle might be worth the trouble.
This one might be a bit of fact and a bit of fiction altogether, because it is true that an incident claim might have an impact on your rates, yet insurance companies will usually consider the severity of the incident and the frequency of your claims to determine how much you pay. Whether you were at fault or not will also have an impact on your rates, and some companies might even have a less strict policy regarding no-fault or small claims, which would help you keep your rates more affordable.