Forward Bank

Misconceptions surrounding car insurance abound and can impact the decisions you make on which car to buy or lead you to lose money. Many of these misconceptions are untrue. To aid you in making an informed decision, below are four common myths about car insurance.

Myth: More expensive cars cost more to insure

Fact: False. Not every expensive car costs more to insure than a mid-priced car. Insurance rates are determined by a variety of factors, including how frequently a specific car type is stolen, the amount of times a vehicle needs repairs, and how much those repairs cost.

Myth: Red cars are the most expensive to insure

Fact: The color of a car has absolutely no bearing on the price of insurance. While the make and model will undoubtedly influence the price you’ll pay, you can pick the color worry-free.

Myth: Traffic tickets make your insurance premiums rise

Fact: Traffic tickets are not helpful to your insurance premiums, but for drivers with clean driving records, a ticket for a minor traffic infraction may not have any impact whatsoever. There are also several steps you can take to reduce the number of points from your license in some states to minimize the impact.

Myth: Carrying the minimum amount of insurance is acceptable, and comprehensive insurance covers everything

Fact: Double false. The minimum amount of liability insurance will satisfy state law but will most likely not cover extensive damages in case of a crash. Comprehensive insurance can cover many situations, but it is specifically for damage done in a non-collision event.

If you’d like to learn more about these common myths and what other factors impact car insurance prices, call us today. We are happy to answer any questions.