Let’s face it, buying car insurance can be about as exciting as watching your phone battery charge. People have all sorts of questions, which is fine. We’re here to answer those. A lot of people have certain assumptions too, though, so we’d like to take a minute to dispel some popular myths about car insurance.

Color Matters

Specifically, a lot of people think insurers charge more for red cars, thinking there’s a generalization that red cars are sporty and people with sporty red cars are faster or more reckless drivers. That’s simply not the case.

Insurers do make determinations based on the car, but the color isn’t one of those factors. What insurance companies do look at are things like the make and model, safety ratings, and how popular a particular car is with thieves.

Members of the Military Pay More

This myth probably stems from the view some people have that people in the military are thrill seekers or that they’re reckless, aggressive drivers. The opposite is actually the truth; many insurance companies provide discounts for active duty military members and their families.

Old People Pay More

The thinking here is that older drivers are more dangerous, so as you get older your insurance rates go up. This is another one that is the opposite of the truth in every way.

First of all, people aged 55 and older can take accident prevention courses to get their rates lowered. Think of it as a driver’s ed refresher course, since most people will have been driving for four decades at that point.

The other thing to keep in mind is that younger drivers tend to be in more accidents, so they’re the ones who end up paying more. By the numbers, car accidents are the top cause of death for drivers between the ages of 16 and 20, whereas less than 1% of drivers above the age of 65 die from car accidents.

To drive it home further, the average annual cost of liability insurance for someone aged 16-19 years old is $2999. The same for people aged 70-74 is $1187.

Insurance Covers a Car Used for Business

You’re a self-employed florist heading to a wedding for a delivery when a car runs a red light and smashes right into your van. No problem, because insurance! Right? Nope, not if you only have personal insurance. And don’t think it’s any difference if you’re driving for someone else. Most employers such as pizza joints don’t provide insurance for their drivers.

Insurance Covers Any Damage to Your Car

Not exactly. Liability coverage only covers damage you cause to someone else or their car. If you want to cover your car for everything, you’ll need collision and comprehensive coverage as well. Of course, that costs more and may or may not be worth it depending on the value or your car.

 

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