Car Insurance myths | what affects car insurance Premium?

1. New Cars Cost More to Insure - This is not always the case. Depending on the driver’s history, insurance for a brand new car is often cheaper than a five or ten year old version of the same vehicle. Newer models have top of the range security features installed, meaning that they are statistically less likely to be stolen, a fact that helps to bring insurance costs down. Older models also tend to be owned by younger or new drivers, who insurers class as a bigger risk and charge a higher premium.
2. Car Color Matters - Although insurers take many factors into account, including engine size, age and value of the car, driver’s record etc., they don’t take any notice of the color.
3. Being Loyal to Insurer leads to Cheaper Coverage - Staying with the same insurance company year on year won’t automatically lower your premiums. It always pays to shop around for a better deal and compare car insurance quotes when it’s time to renew your policy, because providers don’t necessarily reward your loyalty with a reduced price.
4. New Cars Are Stolen More - New models have much more advanced security equipment and anti-theft devices installed, meaning that criminals steer clear and target older vehicles that are easier to steal instead.
5. A Car is Worth What You Paid for It - If your car is totaled or stolen, insurers will only pay to replace it with a similar model at today’s market rate, not the value you paid for it originally.
6. Credit Scores Don’t Count - Sadly this isn’t the case. Most insurers now factor in a customer’s credit score when calculating their insurance quote. The better the credit score, the lower the premium will be. Build your score by keeping on top of credit cards debts and paying bills on time, and you’ll start to see a difference when you renew your auto insurance policy.
7. No Fault Insurance Means It’s Never My Fault - The only thing no fault insurance covers is your medical bills if you are in an accident, whoever is at fault. It doesn’t cover the other driver, it doesn’t cover damage to cars, and it certainly doesn’t mean you’re absolved of any responsibility if you are to blame.
8. I’ve never been in a Crash So I Don’t Need Insurance - Just because you’ve been lucky enough to avoid accidents so far doesn’t mean that’ll always be the case, no matter how good a driver you are. But it’s not just the peace of mind that having motor insurance can provide if something were to go wrong. It’s actually a legal requirement to have some form of insurance, so it’s not an even an option, you must have some sort of protection.