Original post written by HUB International, shared with permission.
Have you always dreamed of owning a sporty red convertible, but hesitated because of high insurance costs? You may be pleasantly surprised to discover that some choices (such as car color) have much less impact on insurance rates than most people think, while other unrecognized factors could lead significantly cost of your car insurance.
auto insurers are carefully regulated by insurance laws, industry standards and actuarial statistics they set their prices. Learning these standards and educate yourself on the most prevalent consumer myths could be a direct route to the car of your dreams, with significant savings on insurance premiums
MYTH # 1 :. COLOR CAR INSURANCE RATES AFFECTS [
insurers based your rates on the back of your vehicle, the cost of repairs, and safety driving record. Since the color of the car has no statistically significant effect on accidents, one account in their calculations
MYTH # 2: .. Luxury cars are more expensive to ENSURE
Your auto insurance coverage for liability and medical expenses is based on claims experience rather than the purchase price. If a luxury car has a better record of preventing accidents and minimize damage, it might actually be more affordable to make a cheap model. High performance sports cars usually have supplements that affect insurance premiums
MYTH # 3: .. CLASSIC CARS ARE CHEAPER BECAUSE NOBODY STEALS THE
In fact, the opposite is often true. Some thieves prefer to steal older popular cars (like the Honda Accord and Toyota Camry) due to the increase in demand for their spare parts. These are the old cars because owners may wish to continue to buy full protection against auto theft
MYTH # 4: .. ALL MODELS PRICE INDIVIDUAL INSURERS IN THE SAME WAY
Each insurer pricing databases on their own experience claims, and some companies have a better record on a particular model than others. Get quotes from a variety of businesses can lead to significant savings
MYTH # 5: .. My rates are based solely on MY DRIVING RECORD
Long ago insurers have discovered a reliable positive relationship between the experience of the driver and claim their credit rating. The result is a lower rate to policyholders with better credit scores. Check your credit report before you shop, and be sure to correct any erroneous information
MYTH # 6: .. If I get a traffic ticket, my rates will go up
Although this is often true, it is not always the case. Drivers with long-term history of safe driving and self-citation can avoid a rate increase from a single ticket. A call preemption your broker is a smart way to know the details. traffic citations are public knowledge, so that your insurance company may learn the term note
MYTH # 7 :. INSURANCE COVERS A FRIEND WHEN THEY borrow MY CAR
Indications. protection for lending cars can be quite complex. In many cases, your car insurance policy covers anyone who borrows your keys, while in other situations the cover of a driver can cover the cost of a collision. The best policy is to avoid paying your car whenever possible, especially to drivers who may not have adequate insurance coverage
MYTH # 8: .. PERSONAL AUTO INSURANCE COVER BUSINESS CONDUCT
If you're self-employed, it can be risky to assume that all your business mileage is your personal auto insurance. Make sure you know the limits of your car insurance, and do the same for employees who drive as part of their employment with your company.
The best way to separate the myths from the facts on car insurance is a friendly conversation with your independent insurance agent
- See more :. http://connects.hubinternational.com/the-red-car-surcharge-and-seven- other self-insurance myths
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