Will you pay more for auto insurance if you own a red car?
Did you know that over fourth percent of people believe that the auto insurance companies calculate their rates based on the color of a car? And, this isn’t the only myth circulating about car insurance. The same percentages also believe that their auto insurance will not cover an at-fault driver. And, these are only two of many misunderstood auto insurance subjects that need to be cleared up.
Every American that owns a vehicle is required by law to have insurance. We know that as real fact, therefore, we need to separate insurance folklores and base our purchase decisions on actuality.
Myth or fact is the point. Take note to a few bits and pieces that will help you.
- Insurance companies will consider many factors when calculating rates, but color is not one of them. In fact, some insurance agencies won’t even ask you for the color of your car when you apply for a quote. Insurers are interested in the year, make, model, body type, engine size and age of your vehicle. A red car won’t cost you more than a green, yellow, black or blue car.
- Over forty percent of Americans incorrectly believe that their auto insurance will not cover an at-fault driver. In reality, most insurance agreements will help pay for repairs even if an accident is your fault.
- About seventeen percent of drivers in the United States are unaware that their location matters and can be a giant factor in the rates that they will pay. In other words, if you live in an urban area you will pay more money than if you are in a suburban area because likely it’s more crowded.
- Higher levels of vandalism, theft and accidents occur in cities compared to rural areas. But, the population isn’t the only factor. Insurance rates can spike based on the cost and regularity of lawsuit, auto repair and medical care costs, probability of insurance fraud and weather patterns.
- If your car is burglarized, you may not be covered. This is not the case. Instead, stolen property is protected by homeowners and renters insurance.
Are you seeking facts about your insurance? Contact your insurance agent for more information.