Common Automobile Insurance Myths

Many insurance policies can be quite confusing sometimes. There are tons of options, terms and conditions and a policy holder can easily get lost in all of them. Moreover, every state has its own regulations as to every policy. For instance, car, business and private unemployment insurance in California have much more options than the same insurance policies in Utah. Automobile insurance is not an exception. There are different myths that most policyholders share. Here are some of them.

1. My old vehicle will not be stolen.

That is surely wrong. Statistics say that automobile thieves would sooner steal older vehicles because it is easier.

2. The color of my automobile makes difference.

It is commonly believed that red autos drive premium prices up. It is a delusion, though. Insurance carriers are more interested in the model and the make, body style, engine size, year, and sometimes location (it sometimes matters if a car is parked in a street parking, driveway or it is in a garage). What matters is your behavior. If you make violations such as reckless driving or speeding, your premiums will definitely be affected no matter what color your automobile is. So car color is absolutely insignificant for insurers. You should still keep your vehicle safe.

3. Credit scores do not influence insurance premiums.

Premium rates are commonly determined by numerous factors. And in most of the times your credit score also has some influence as it shows how you manage your pecuniary affairs. So many insurance companies pay attention to this factor as well.

4. I'm protected if my vehicle is damaged by wind, hail, flood or fire, stolen, or vandalized.

Collision and comprehensive coverage are not included in all the policies; it is optional. So if the vandals paint graffiti on your cat or a big animal damages it, you won’t necessarily be covered. So if you want protection from those events, you need to include those options to your plan.

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