Car insurance comprises a portion of your monthly expenses. It’s only right to learn the facts—and the myths—of long-held beliefs about it.
1. You Can Lower Car Insurance with Security Features
True, although no official report can corroborate that. You can take the word of insurance providers, though, such as Allstate. According to it, safety features such as car alarms and anti-lock brakes can entitle you to an auto insurance discount.
The logic is simple: these make it difficult for thieves to run away with your vehicle. You don’t need to buy a new car to add security features. Today, you’ll find dozens of accessories that you can fit. Click here to view the listing.
2. Auto Insurance Eats Up a Huge Portion of Car Ownership Costs
This is false. No doubt, auto insurance is an expense, but it doesn’t have the most significant share of your car ownership costs. Depreciation and maintenance usually make up the bulk of the spending.
Meanwhile, a new report by AAA suggested the highest increase in car ownership expense is the finance charge. In 2019, it increased by 24%. Higher interest rates and car prices fuel this growth.
You can also easily compare car insurance premiums as well. In less than ten minutes, you can already receive multiple quotes. This alone can already save you as much as 5%.
3. You Can’t Insure Older Cars
This is also false. You might even need to have one, so you can drive around the state. Usually, though, insurance providers charge higher premiums for Old Reliable. You can save more money by removing comprehensive or collision coverage.
Another option is to avoid bundle insurance. That is when companies combine auto insurance with a home or health insurance.
4. Luxury Cars Are the Most Expensive to Insure
This statement is usually true. Just take a look at the 2019 list from Insure.com. All of the top ten are luxury vehicles. Compare also the difference in insurance premiums between them and the cheapest-to-insure cars. The premiums for the likes of Tesla, Jaguar, and Mercedes tend to be double than those of Honda or Toyota.
Why are these expensive? They are costly to repair. Because they are usually not mass-produced, it’s challenging to find the spare parts. It might also be a struggle to find a repair shop.
Luxury vehicles are also hot among thieves, based on the 2019 list of the most stolen cars in the country. This is except for Tesla. It seems thieves these days can still feel uncomfortable dealing with heavy tech.
5. Women Pay Less than Men When It Comes to Auto Insurance
Surprisingly, they don’t. This is the result of multiple studies between 2017 and 2018. Women pay more in more than 23 states. The only time men spend more is when they’re young adults. Note, though, using gender as one of the criteria for calculating auto insurance is controversial. Many view it as unfair.
Knowing the facts and the myths will help you compare insurance rates. You might even learn to negotiate with your insurance provider. Most of all, you know what to do get discounts.