There are often a lot of misconceptions when it comes to auto insurance. If you've ever talked to a friend about auto insurance, you've probably heard some unsettling myths. For example, you might have heard that older drivers are charged more for insurance. However, that is typically not the case.
There are many other myths surrounding auto insurance, including these three:
Myth 1: The Color Of Your Car Matters
One of the most popular myths about car insurance is that the color of your vehicle matters. A lot of people believe that specific colors, such as red, will cause your insurance rates to rise. However, the color of your vehicle doesn't impact your insurance rates in any way.
What does matter is what type of vehicle you have. Insurance rates are based upon the size of the engine, age of the vehicle, and the make and model. So a sports car will generally cost more to insure than a older sedan. If you are shopping for a vehicle and want to get a good insurance rate, be sure to look into what vehicles will cost more to insure.
Myth 2: Credit Doesn't Matter
Another myth that many people believe is that credit scores don't matter when it comes to insurance. Unfortunately, that is not the case. Just like with financing, your credit score comes into play when you purchase auto insurance.
Those with lower credit scores will pay more than those with higher credit scores. So if your credit isn't too great, consider working on improving it. Not only will it help out with general finances, it can also help you save some money on your car insurance.
Myth 3: Insurance Will Cover Everything
If you are like most people, you probably think that your insurance company will cover anything—and possibly everything—relating to your vehicle. However, that is not true at all. The type of coverage you purchase will dictate what is covered.
For example, liability insurance will not pay for your vehicle if it is stolen or damaged by Mother Nature. To have the non-basics covered, you will have to pay more for comprehensive auto insurance. Depending on your insurance company, you might have to pay for both collision and comprehensive insurance separately in order to be fully covered. So keep this in mind when purchasing your insurance.
As you can see, there are many myths surrounding auto insurance. If you are looking to switch providers or purchase insurance for your vehicle, make sure you know the facts. Not only will it help you make a good decision, but it can also help to save you money. For more information, contact LA Insurance or a similar company.