Ignore These 6 Common Car Insurance Myths

SpeedWash Car Wash understands that searching for the best car insurance deal can be complicated enough, but it has not made any easier by the many misleading myths that surround the subject. When you are looking for your next policy, start by ignoring these six common misconceptions.

1. Red Cars Cost More to Insure
There is a common but incorrect idea that the color of a car influences how much it costs to insure. The theory is that red cars are sportier and more attractive, and so are more likely to be stolen. Some people also think that the owner of a red car is more likely to drive aggressively and is more likely to have an accident.
If either of these ideas were true, the cost of insuring a red car would be higher. However, the figures do not support this myth, and it costs no more to insure a red car than any other color. In fact, when was the last time an online insurance quote even asked what color car you own?

2. Car Insurance Covers Possessions Too
Many people assume that the contents of their car are also covered if they are damaged in an accident or lost through theft. While this may be true for high-end fully comprehensive policies with all the added bells and whistles, you cannot rely on it. Many policies only cover the bare minimum of contents which generally belong in a car, such as child seats, repair kits, spare tires, and so on. Any expensive items which should be covered by your home insurance may not automatically be covered.
Before relying on your policy to cover any possessions left in your car, check exactly how much coverage is stated in the policy. On the other hand, if possessions coverage is not important to you, then make sure it's not included as standard. You may be able to get a useful discount by excluding contents coverage altogether.

3. Insurance Doesn't Cover Accidents You Caused
Another myth is that if you are at fault for an accident, you will be left responsible for the repairs to your own vehicle. This was once common, but nearly all policies today will cover even 'at fault' damage. The major exceptions are if you had the accident while driving under the influence, or if you were driving dangerously enough to be committing an offense.

4. Credit Score Is not a Factor
Everyone knows that your credit score affects loan and credit card applications, but many people assume it's not important for insurance. However, if you pay your premiums monthly, you are effectively using credit to spread out the annual cost of your coverage.
It is against the law for an insurer to directly penalize you for a poor credit score, for example by adding high interest charges to your premiums. However, your credit score will be factored into your overall quote along with your driving history, number of previous claims, and so on.
Cleaning up your credit rating will tend to give you more attractive quotes. The best way to get cheaper car insurance with a bad credit rating is to pay annually, if that is at all possible.

5. Insurance Pays Off Car Loans
If your car is totaled or stolen, your insurer will pay out to cover the vehicle's value. However, do not assume that this will clear any car loan you have outstanding. If the remaining finance is higher than the car's replacement cost on the open market, you will likely have to make up the difference. This is a particular risk if you financed your vehicle with a bad credit car loan, where high interest charges can push the loan balance far above the car's actual worth.

6. You Should Always Cut Out the Middleman
Lastly, it is often said that dealing directly with the insurer will get you a better quote than using an independent broker or comparison site. However, dealing directly does not necessarily mean you are cutting out the middleman. In nearly all cases, the insurer uses their own appointed agent to arrange the deal, and this will mean arrangement fees and extra charges are still applied.

What is more, when you deal with a broker or comparison service, there are always several insurers competing for your custom. This usually drives prices below any deal that is available by going direct.

Searching for the right car insurance policy is no one's idea of fun, especially when you need to navigate around so many myths and misconceptions. SpeedWash Car Wash suggests taking advice from an independent insurance broker or using a reputable comparison website will help to cut the confusion, resulting in a better quote with much less hassle and stress. Happy insurance shopping from SpeedWash Car Wash!