Myths come and go for all facets of life, but some tend to stick much longer than you would think. There are a plethora of rumors that swirl around regarding car insurance worldwide ranging from the color of the vehicle to how new your car is. To help keep your Mundlein auto insurance under control, here are some myth breakers to help with the process.
Red cars come with hefty insurance tags
By now you have probably heard a million times that red cars are going to cost you at the insurance company. The truth of the matter is color has no effect whatsoever. Most insurance companies will not even ask you the color of the car when calculating the insurance rates. What companies are interested in is the year, make, model, body type and age of your vehicle.
Insurance covers vandalized, stolen or damaged cars from hail or fire!
Sadly, your Mundlein auto insurance will not cover any of the above unless you have comprehensive coverage. There are a number of different kinds of coverage and most states only require liability coverage. This of course will only pay for damage you cause to others. In order to fully protect your vehicle from all damaging situations, collision and comprehensive coverage is a must.
Thieves desire new cars!
It should be obvious that anyone would prefer a new car to an old vehicle. But statistics show thieves actually prefer to steal older cars. The 2011 National Insurance Crime Bureau report put out a top 10 most-stolen vehicles list with a ’94 Honda Accord, ’95 Honda Civic, ’97 Ford F-150 pickup and a ’99 Ford Taurus making the list. The reason for this is because older vehicles are easier targets.
Mundlein auto insurance will pay off the rest of a loan or lease if the car is totaled!
Wrong! When a car is totaled, the auto insurance policy will pay the actual cash value of your car minus your deductible. Actual cash value is what your car was worth before the accident while factoring in depreciation. Sadly, this means you are still responsible for outstanding amounts on the loan or car lease.
Sports cars pay higher car insurance!
Much like the belief of red cars, there is a myth circulating that sports cars pay higher car insurance rates because they get more tickets. However, according to a list by Quality Planning Corp., coupes, sedans and SUVs get the most violations. The only sporty car on the list was a Mercedes-Benz SL Class convertible.