Myths can make life interesting. Big Foot, the Loch Ness Monster, and the lost land of Atlantis--fact or fiction--remind us that the world is rife with mystery and possibility. When it comes to car insurance, however, myths serve no purpose at all. In fact, drivers who don't have their facts straight may choose a vehicle for all the wrong reasons. And, they may fail to secure the proper auto insurance--which could prove disastrous.
Here are a few of the most common auto insurance myths and the truths that dispel them
A red car will put you in the red.
For years, the radiant red automobile has been touted the most expensive colored car to insure. The main problem with this belief is that it is based on the assumption that your car's paint color has an effect on your insurance rate--which is absolutely untrue. According to "Car Insurance Myths," whether it's black, silver, taupe, or beige, the same car in a different color will have the same rate." What is important to insurance companies is the year, make, model, and engine size of your vehicle. And, of course, your driving record. Pink and purple polka dots may earn you some odd looks, but they won't result in a bigger premium.
Small car = small insurance premiums.
Surely, a small car with a tiny price tag is cheaper to insure than a big and costly SUV. While one might think so, this is often not the case. In fact, The Insurance Journal's "10 Insurance Myths" explains that small and mid-sized SUVs and minivans are generally the cheapest to insure because small cars tend to be bought by more inexperienced drivers and passengers of small cars incur more expensive injury claims.
Plus, small cars are more likely to be "totalled" in a collision than their weightier counterparts. If your sense of frugality--or your spouse's--has been nagging you to buy compact, you now have the perfect argument to prove bigger is better.
Expensive car = expensive premiums.
It only makes sense that a luxury automobile owner would pay significantly higher insurance premiums than someone who drives a Kia, right? Not necessarily. The price tag on that upscale model in no way predicts heftier insurance costs. "How can that be?," you ask. "8 Auto Insurance Myths" explains that luxury cars "typically offer better anti-theft devices, accident avoidance technologies, and passenger protections systems than less expensive choices." Who knew that choosing a Beamer over a Beetle could save you money?
Thieves prefer new.
If you think your old beater is safe from car thieves, don't stop locking your doors just yet. Statistics actually show that the reverse is true--thieves prefer to steal older models. Why? Well, there are two prime reasons. Older cars are easier to steal. And, as your car begins to age, parts become rarer and more expensive. This means that thieves can garner a heftier price by stripping down the "clunkers." Not convinced? According to Investopedia's "10 Car Insurance Myths," a 2007 bureau report that listed the most stolen vehicles included the 1995 Honda Civic, 1991 Honda Accord, and the 1989 Toyota Camry. Even in '07, those cars were old.
With a number of common myths and misconceptions shattered, you can now feel free to buy the car you love--and not the one you mistakenly thought would save a heap in insurance. Yes, that brand new, massive, candy-apple red Cadillac with all the bells and whistles is calling your name. Don't you hear it?
What car insurance myth do you think is the most preposterous? Why?
Here are a few of the most common auto insurance myths and the truths that dispel them
A red car will put you in the red.
For years, the radiant red automobile has been touted the most expensive colored car to insure. The main problem with this belief is that it is based on the assumption that your car's paint color has an effect on your insurance rate--which is absolutely untrue. According to "Car Insurance Myths," whether it's black, silver, taupe, or beige, the same car in a different color will have the same rate." What is important to insurance companies is the year, make, model, and engine size of your vehicle. And, of course, your driving record. Pink and purple polka dots may earn you some odd looks, but they won't result in a bigger premium.
Small car = small insurance premiums.
Surely, a small car with a tiny price tag is cheaper to insure than a big and costly SUV. While one might think so, this is often not the case. In fact, The Insurance Journal's "10 Insurance Myths" explains that small and mid-sized SUVs and minivans are generally the cheapest to insure because small cars tend to be bought by more inexperienced drivers and passengers of small cars incur more expensive injury claims.
Plus, small cars are more likely to be "totalled" in a collision than their weightier counterparts. If your sense of frugality--or your spouse's--has been nagging you to buy compact, you now have the perfect argument to prove bigger is better.
Expensive car = expensive premiums.
It only makes sense that a luxury automobile owner would pay significantly higher insurance premiums than someone who drives a Kia, right? Not necessarily. The price tag on that upscale model in no way predicts heftier insurance costs. "How can that be?," you ask. "8 Auto Insurance Myths" explains that luxury cars "typically offer better anti-theft devices, accident avoidance technologies, and passenger protections systems than less expensive choices." Who knew that choosing a Beamer over a Beetle could save you money?
Thieves prefer new.
If you think your old beater is safe from car thieves, don't stop locking your doors just yet. Statistics actually show that the reverse is true--thieves prefer to steal older models. Why? Well, there are two prime reasons. Older cars are easier to steal. And, as your car begins to age, parts become rarer and more expensive. This means that thieves can garner a heftier price by stripping down the "clunkers." Not convinced? According to Investopedia's "10 Car Insurance Myths," a 2007 bureau report that listed the most stolen vehicles included the 1995 Honda Civic, 1991 Honda Accord, and the 1989 Toyota Camry. Even in '07, those cars were old.
With a number of common myths and misconceptions shattered, you can now feel free to buy the car you love--and not the one you mistakenly thought would save a heap in insurance. Yes, that brand new, massive, candy-apple red Cadillac with all the bells and whistles is calling your name. Don't you hear it?
What car insurance myth do you think is the most preposterous? Why?
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