The problem with insurance myths is that they lead us astray. They lead us to make decisions we might otherwise not make, or perhaps worse, end up costing us money. Let’s have a look at two common auto insurance myths: Fact : It would be quite difficult for the car insurance industry to defend why a red car would be more expensive to insure compared to a blue or green one. The problem is many licensed drivers believe this myth to be a fact. The reality is that the insurance rate is based on the model, make, and year of the car, how likely it is to be stolen and how well it protects the driver and passengers in a collision. Car color does not play a role in the rates you end up paying. Fact : This is true only if you have purchased comprehensive car insurance coverage. If you do have it, damages resulting from things like vandalism, fire, theft, and hail will be covered by the insurance company. Basically, comprehensive coverage will typically pay damages related to non-collision events. Collision coverage is another optional coverage that people too often assume they automatically have included in their policy. Collision coverage will take care of damages that are the result of a collision whether it’s with another vehicle or an object. You will have to purchase collision coverage when getting your auto insurance policy. Truth : Shop Around to Save While there are many ways to save on your auto insurance rates, chances are you’ll see the biggest car insurance savings by shopping around. On average, shoppers save up to $300 after shopping their car insurance rates.
Myths and facts about car insurance
Myth 1: The color of the vehicle can affect the cost of car insurance coverage
Myth 2: The insurance company will provide coverage when the car is vandalized, stolen, or damaged by fire or hail
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