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Buying Auto Insurance: Don’t Buy These Myths

If you have to buy auto insurance, don’t buy these myths that I’m sharing in this article. When it comes to automobile insurance, it seems as if customers are at the mercy of the insurance companies. No one knows how coverage’s and premiums are calculated. And what about all of those discounts? Are you getting all of the discounts that you qualify for? Do you know how much your deductibles are? Automobile insurance is a highly competitive field where insurance companies go on marketing blitzes where they make a baffling array of claims. It seems like all of them promise you’ll save by switching to their insurance. All of these things have led to a lot of confusion that has given birth to some myths about automobile insurance. So when it comes to buying automobile insurance, don’t buy these myths.

Myth #1 – The Color of the Car

There are many factors that go into determining the cost of automobile insurance but the color of the car isn’t one of them. Insurance companies consider things like the make, model, engine size, body style, the age of the car, the age driving record and credit history of drivers. Insurance premiums are also based on sticker price, repair cost, a cars overall safety record and the likelihood of theft. Obviously, some cars are more likely to be stolen than others. This is why some insurers offer discounts for vehicles that have devices that decrease the chance of injury and theft.

Over the years people have assumed that the color of vehicles play a big part in calculating the cost of insurance premiums. This notion has been linked to the belief that people that drive red cars drive more aggressively and speed more than others. In reality, insurers care more about if you had any previous accidents, where you live and how many miles you drive annually. This isn’t an all-inclusive list of factors that determine the cost of insurance premiums but the color of the vehicle isn’t one of them.

Myth #2 – Your Credit Score Doesn’t Effect Your Insurance Rate

Your credit-based insurance score is a factor when insurers calculate your insurance rate. An insurance score is a number derived from your credit report that tells how well you manage your financial affairs, not your financial assets. Many insurance companies consideration your insurance score when you want to buy, change or renew your auto insurance coverage. If you have good credit, and insurance scores are derived from your credit history, you could pay less when your insurance score is entered into the pricing equation.

The color of the automobile and your credit score are the first two topics in a series about automobile insurance myths. I’ll be revealing more of these myths in future articles. In the meantime if you buy auto insurance, don’t buy into these myths.


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