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5 Myths About Auto Insurance

Tuesday, 07 Dec 2010 03:47 PM

When it comes to car insurance, there are numerous myths. Many believe that red cars cost more for insurance, because they are more prone to accidents. Similarly, some believe that insurance is costlier for cars having more parking tickets, but these are just myths and are far from reality.
 
Here are the top five auto insurance myths:
  1. An auto insurance company charges you more for a red car.
Fact: This is one of the most famous auto insurance myths that some people believe. Actually, red cars do not increase the auto insurance quote, as the overall cost of insurance doesn’t depend on the color of the car. No particular color can make insurance for your car expensive, nor can any color help you get cheap auto insurance. The cost of insurance depends on a variety of factors such as the make and model of the car, but certainly not the color.
  1. I bought auto insurance from this auto insurance company and now I can’t go elsewhere.
Fact: Strangely, many people do not know that they can change their auto insurer. You are never obligated to pay the amount asked for renewal by your existing insurer. The truth is that you can certainly change your insurer and you must do so if you are getting a better offer. At the time of renewal, you can compare auto insurance quotes from various insurers and then select the best offer on the table.
  1. Parking or speeding tickets will cause your auto insurance quotes and premiums to rise.
Fact: Just like other auto insurance myths, there is no truth in this. Parking tickets do not affect your auto insurance premium as long as you have paid them all. However, nonpayment of parking tickets can lead to your license being cancelled, which, in turn, may lead to an increase in your insurance premium.
  1. If I buy multiple products from an auto insurance company, it will cost me less.
Fact:The same insurer may not guarantee lower rates. While some insurers do give preferential treatment to their existing customers, this does not necessarily mean cheap auto insurance. If you compare various auto insurance quotes, you may get a better deal from other insurers as well.
  1. Online car insurance costs 10 to 20% less.
Fact: Claims of buying insurance with one-tenth or one-fifth saving through online purchase must be scrutinized. While you may come across a variety of websites offering cheap auto insurance, you must check the veracity of such offers and the reputation of such insurers. Online car insurance is certainly cheaper in many cases, but you must get the insurance cover only from authorized and reputed insurers. Don't fall for the cheap auto insurance tag if it involves compromising on other factors. Also, never forget to compare auto insurance quotes available both online and offline before making a decision about buying auto insurance.

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When it comes to car insurance, there are numerous myths. Many believe that red cars cost more for insurance, because they are more prone to accidents. Similarly, some believe that insurance is costlier for cars having more parking tickets, but these are just myths and are...
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