Car insurance is not everyone’s favorite subject. Most people just see car insurance as a necessary evil, like taxes. Car insurance, along with other kinds of insurance is one of those things that is often not appreciated until that day when you need it. But even with all that people think and are negative about regarding insurance, there are some things that people often think are true about car insurance that simply aren’t. Here are some of those things that you may have heard from time to time.
It’s often heard that the owners of red cars receive more speeding tickets because red cars are often sportier and driven more aggressively. It would make sense then that insurance companies would have researched this and would therefore charge higher premiums for red cars. The truth of the matter is there is no data to back this story up. Further, insurance companies pretty much ignore the color of a car when evaluating what to charge for insuring it. Insurance companies are more interested in things like model, price, and size of the car.
There may be some controversy on the often-heard rumor that older drivers pay more for car insurance. In some cases, this would seem justified, but the truth is it’s often just the opposite. Many drivers who are 55 or older can get their rates reduced — by up to 10 percent for three years — if they successfully complete an accident prevention course.
You may want to do a little research if you think your insurance policy will cover you if you drive your car for business. Personal auto insurance does not protect you if you are self-employed and using your vehicle for business purposes. This is a good one to keep in mind if for example you use your car to deliver pizza for a restaurant that you are not an employee of. If you’re involved in an accident while delivering pizza like this, your insurance company will most likely deny any claims.