Every car owner needs insurance, and yet itโs also something that is widely misunderstood by the people who use it.
To deal with this dilemma, weโve put together an overview of the main misconceptions surrounding auto cover, and the truths that lie beneath the surface.
Myth: You can get cheaper car insurance at the right time of year
While itโs accurate to say that car prices fluctuate depending on the season, the same doesnโt apply to insurance.
In fact, services like Cheap Insurance let you find great deals whether in the depths of winter or at the height of summer.
The reason for this is that insurance isnโt optional, and so if you want to drive your new car immediately, then you have to purchase it right now, not wait for a more favorable moment.
Myth: Comprehensive insurance is all-encompassing
When you see the word โcomprehensiveโ attached to a car insurance deal, itโs easy to assume that this will let you make a claim in every conceivable scenario.
The reality is that there are still restrictions and limitations on comprehensive cover which you have to be aware of.
These vary depending on the insurer and the policy itself, so read the small print to avoid disappointment.
Myth: Insurance costs go down as cars get older
The age of your car can play a part in determining insurance costs, but other factors are more instrumental in altering the risk calculations carried out by providers.
This means that if you own a brand-new family vehicle, insuring it will be cheaper than if you drive a decade-old sports coupe.
Insurers use accident stats to work out premium prices, and drivers of vehicles that are in groups deemed to be safer, regardless of vehicle age, will make bigger savings.
Myth: Credit history is irrelevant in this context
Unfortunately unless you live in California or one of the small number of other states where using credit history to calculate car insurance costs has been made illegal, you will need to accept that providers will look into your finances when putting together quotes for cover.
Credit score is used as a factor because it is an indicator of your reliability; if youโve repaid loans on time and kept your credit card balance in check, then you will probably be responsible behind the wheel as well.
Of course you can improve your credit score if it is languishing in the doldrums, so this is another aspect that you can control to make savings on your car insurance.
Furthermore, the tide of opinion may be changing on this controversial issue.
Myth: Lending your car to someone else relieves you of liability if an accident happens
Lots of car insurance policies allow you to lend your vehicle to a third party, such as a friend or family member, and allow them to drive it with the full extent of the cover you have paid for.
This is all well and good, but you shouldnโt assume that if a third party is driving when an accident occurs, your insurance does not have to be used to make a claim.
The reality is that the insurance follows the car, not the driver. So in most scenarios youโd have to take the hit, and suffer the consequences of increased premiums going forward, even if you were not actually responsible for the incident itself.
Myth: Car color matters
Finally, one of the most bizarre rumors out there is that some cars are more expensive to insure because of the color of their paintwork, with red vehicles often cited as being money pits in this regard.
Luckily this is simply false, so you can choose whatever color car takes your fancy without fear of being overcharged on your insurance.
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