Car insurance is a tricky subject, which is probably why there are a number of common misconceptions about how insurance works. If you’re a car owner, understanding how auto insurance is calculated can help ensure that you get the best insurance rates for your vehicle. To help you become familiar with the facts about auto insurance, the insurance experts at American Tristar Insurance in San Diego debunk four of the most common insurance myths.
1. Older Drivers Pay More For Car Insurance
While life insurance certainly does go up with age, the opposite is actually true for car insurance. In fact, drivers age 55 and above typically receive decreased rates as they age. The average company decreases their premium by 10 percent every three to five years depending on the individual’s driving history. Additionally, older drivers can earn additional breaks in their premium by regularly completing accident prevention courses for maintaining driving skills.
2. A Bad Driving Record Makes It Impossible to Get Insured
There many people who drive uninsured because they believe they cannot attain coverage as a result of a poor driving record. In reality, there are insurance companies that specialize in high-risk drivers and even San Diego auto insurance companies who don’t offer special policies for these types of drivers will still insure individuals with bad records. While drivers with poor records may be subject to higher premiums, there is no reason that an individual’s driving history will make it impossible to be insured.
3. Red Cars Cost More to Insure
Despite the myth that red cars cost more to insure, the color of your car has absolutely no bearing on the insurance premiums that you pay. There are many different theories revolving around this myth, including the idea that red cars make you want to drive faster or that they are more likely to receive moving violations. However, the truth is that insurance companies do not take the color of your vehicle into consideration when designing your policy.
4. A New Car Always Costs More to Insure
While there is some truth to this idea, new cars are not always more expensive to insure. As car insurance is primarily calculated based on the worth of a vehicle, a new car is only more expensive to insure if it is worth more than an older car. Since some new cars can be worth little, and older models can be worth a lot, some new cars can actually be cheaper to insure than certain older vehicles.
If you’re thinking of purchasing a car, it’s important to find coverage for your particular driving needs. If you are concerned that you will not be able to find affordable car or motorcycle insurance in San Diego, give a friendly American Tristar insurance agent a call at 619-272-2100. Our agents are always happy to answer any questions you have and to get you a free no-obligation insurance quote. We look forward to hearing from you!