Myths about auto insurance abound; here are some of the most common misconceptions and the facts that dispel the fiction.
Myth #1: Auto insurance is more expensive for new vehicles than used ones
Fact #1: When it comes to car insurance make and model of the vehicle carry a heavier weight than calendar year in which the vehicle was manufactured. Different makes and models of cars attract different types of drivers. For example, someone who drives a turbo-charged sports car will pay more than someone who drives a midsized family sedan or SUV because it is more likely that the person who drives the sports car will engage in more risky behavior (like speeding) than someone who drives a family car.
Other factors that insurance companies take into account include:
· How likely the vehicle is to be stolen. Believe it or not, the most stolen vehicles are ones that haven’t changed much over the years, like mid-90’s Accords, Civics and Camry’s.
· Safety features. New cars tend to have more safety features, which can significantly decrease the cost of their insurance policy.
· Cost to repair and replace parts. The difficulty of finding and replacing parts is taken into account when determining insurance premiums. The harder it is to find parts and repair the vehicle, the higher the cost to insure.
· Your driving history. Your insurance rate is partially determined by your driving history and the coverage options you select. A driver with an impeccable driving record will pay less than someone that has many past driving infractions. Similarly, the type of coverage options – such as comprehensive vs. limited liability policies – will in part dictate your rates.
Myth #2: It costs more to insure a red car
Fact #2: The color of your car has no impact on your auto insurance rates. In general, here are the factors that insurance companies take into account:
· The size of your engine
· The body type
· Driver age
· Driving record
· Credit history
· Sticker price
· Cost to repair
· Safety record
· Risk for being stolen.
Myth #3: Keep your rates from increasing by not reporting an accident
Fact #3: It doesn’t help you to withhold information about an accident. In most states, you are required by law to report an accident when the damage exceeds a certain limit (check the DMV for pertinent laws in your state.) The other driver or owner of the other vehicle may report the accident, in which case you will be held liable for any damages. If you are issued a ticket, it can appear on your driving record and trigger a premium increase.
Separating fact from fiction when it comes to auto insurance can make a difference when it comes to choosing the right vehicle. NY car insurance can be complicated. Let the experts at Tanner Insurance Agency, Inc. help you find the right auto insurance policy for you.