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Five Myths About Auto Insurance
December 8th, 2008
When you search for auto insurance quotes, it's important to be equipped with factual information. You don't want to start hunting for auto insurance online, and have a lot of misconceptions running through you head. A well-prepared, educated consumer will be able to find the best auto insurance quotes, and not be fooled by gimmicks or falsities. So, here are fives myths to keep in mind the next time you search for auto insurance online.
Number Five – Red Cars Get Higher Rates
The color of your car has absolutely no bearing on your auto insurance rates. None. Nada. Zip. Just because you drive a Cherry Red 2008 Mustang, doesn't mean you'll have higher auto insurance quotes than if you drove a Navy Blue 2008 Mustang. This misconception comes from personality factors more than factual information. That is, people who drive flashy red cars often are a bit more outgoing and maybe like to drive a little faster. If this is the case, they will likely have a few speeding tickets, which will directly affect auto insurance quotes. But to think that auto insurance rates are based on color is a fabrication.
Number Four – No Fault Insurance is "Fault Free"
When a person hears "no fault" insurance, they think that they are not at fault during an accident, even if they were. They think that if they cause an accident, this type of insurance will keep the accident off their record. Nothing is further from the truth. No fault insurance simply covers health costs and medical bills, whether you or another person was at fault during an accident. It is basically guaranteed coverage, no matter who was at fault.
Number Three – If a friend wrecks my car, his insurance will cover it
Yet another misconception that can lead to a lot of trouble. If you let someone else drive your car, you and your auto insurance company are still liable for the damages. And depending on your specific policy, that coverage may be limited. The driver's own insurance may be supplemental, but you and your auto insurance company are the first ones liable.
Number Two – Insurance Rates are Set by the Federal Government
Nope. Not true. When you shop for auto insurance online, you'll find a wide variety of auto insurance quotes, but none of them will be set by the federal government. Certain states may set minimums on coverage, but they do not price-fix. When you search for auto insurance quotes, the rates you see will be based on your age, driving record, the car being insured, your credit history, and other incidentals, none of which are influenced by the federal government.
Number One – I'm a Safe Driver, I Don't Need Auto Insurance
This is the biggest and most dangerous misconception. Each and every state in the US requires that drivers carry some minimum level of auto insurance. This usually comes in the form of liability insurance, which will cover damages to another person's car if you cause an accident with them. It protects other drivers from the uninsured. So, no matter how good of a driver you are, you still have to search for auto insurance quotes, and find a policy that suits your lifestyle.
