Car Insurance Misconceptions Nobody Should Believe

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Your auto insurance policy is affected by many different factors but it is possible that many of those that you think about are not actually true. The truth is there are various misconceptions that are presented as reality about auto insurance. It is important that you avoid thinking any of the following misconceptions and myths are correct since they will not affect your car insurance policy.

Myth – It Is More Expensive To Insure Red Cars

This is a rumor that has been floating around for a long time now and it most likely appeared because sports cars were usually red at some point in history. However, in reality, car color has absolutely zero influence on the calculation of the insurance policy. states that car model and make will surely affect insurance, but color is not taken into account.

Myth – More Expensive Cars Cost More To Insure

Contrary to popular belief, purchase price never impacts premium costs as much as the repair costs do. Many of the mid-priced vehicles actually cost a lot more to insure than numerous popular luxury cars. This is due to the fact that their loss history is much higher or repair costs are higher. Make sure that you talk with the insurance agent in order to know about these things or you might be surprised by a rather large new premium.

Myth – Insurance Costs Are Increased With Every Traffic Ticket

Nobody loves getting a ticket, but in the event that the violation is just a minor one and the driving record is clean, rates are not going to be increased. There are many US states where classes can be taken in order to remove or reduce license points. This will actually lower insurance premiums. However, rates do end up affected in the event that you get many traffic tickets, especially repeat ones.

Myth – You Only Need State-Minimum Insurance Liability

In most parts around the world, drivers need to have at least minimum liability insurance. This is normally calculated based on what is enough as an accident happens. The problem is that when you buy the minimum policy, in the event that an accident happens, you end up paying a lot more from your own pockets. Discuss the topic with the insurance agent so you can determine an appropriate amount based on the individual financial situation and driving habits.

Myth – Credit Score Does Not Affect Car Insurance Rates

There are numerous factors that are taken into account when calculating insurance rates, like driving record, age and claim history. In some cases, credit history is also taken into account. In many states the insurance companies are allowed to use the credit scores in order to set rates since those that have a high credit score tend to have much fewer accidents. Due to this, insurance companies are faced with lower costs. Getting your credit score just a little higher before taking out an insurance policy is always a really good idea.

Remember that at the end of the day, the only person that can offer accurate information about your insurance policies and what is available for you is the agent.

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Melissa Thompson

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of and writes about health, wellness, and business topics.