Busting 5 Auto Insurance Myths Like any other industry, there are many myths surrounding auto insurance. All of them are about increased premiums because of a generalization about the car, but few of them are true. This list of 5 of the most common auto insurance myths is geared to perpetuate the truth, so you don’t limit your insurance possibilities on misleading assumptions.
Myth 1: Red Cars Cost More to Insure Despite popular belief, insurance companies are not worried about the color of your car. There’s some worry that a red car attracts the cops’ attention. Whether or not that’s true, the color of your car isn’t going to change your risk factor, so don’t worry about the color when you go to buy a car.
Myth 2: Older Cars are Cheaper to Insure That’s not always true. Would a ’65 Shelby GT350 cost less to insure than a basic model 2006 Dodge Neon? Of course the Shelby is going to cost more. That car houses almost 300 horses on 8 cylinders under the hood, making it a sports car to the bone. The Neon only boasts 132 on a four-cylinder engine, making it a commuting car. The car doesn’t approach the same engine size or capabilities as the Shelby. It would not be fair to assume that the Neon is a more at-risk vehicle because it’s newer. Age can sometimes be indicative of a lower price, especially if the car has depreciated significantly over the years. That’s not the main factor though. Insurance companies look at the overall capabilities of the car, not just its age.