All automobile owners need auto insurance plan because it is the law. However, many insurance plan policies are immensely complicated and with so many incorrect facts all around, it is probable that some people will commit errors along the way. Confusion will lead to costly errors and this is the motive why it is necessary to examine insurance quotes in order to come to a more informed decision. From costs for car insurance to premium, examine some of the most common vehicle insurance plan myths, debunked:
Myth Number 1: The most steeply-priced motors to insure are purple cars.
Debunked: This myth has been round for ages. Fortunately, this is exactly what it is, merely a myth. Colour is not a factor in deciding the prices for auto insurance. However, current surveys exhibit that about 25% of drivers consider that the coloration of their auto is a aspect in identifying their insurance plan rates, especially crimson cars. The truth is that all insurance companies will now not even ask the colour of the car when calculating quotes. They are certain to ask the auto model, the body type, engine dimension and the age of your car.
Myth Number 2: New vehicles are probably to be stolen
Debunked: The reality is, it is the other way around. According to the National Insurance Crime Bureau, the top ten most stolen automobiles of 2008 were:
1. Honda Civic (1995)
2. Honda Accord (1991)
3. Toyota Camry (1989)
4. Ford F-150 (1997)
5. Chevrolet C/K 1500 (1994)
6. Acura Integra (1994)
7. Dodge Ram Pickup (2004)
8. Nissan Sentra (1994)
9. Toyota Pickup (1988)
10. Toyota Corolla (2007)
The purpose why most car thieves opt for older automobiles is that they are much simpler to steal than more recent cars. In addition, because most automobile proprietors are retaining their motors longer due to the unstable economy, the market for used automobile grew to become in demand. Most of the time, stolen older cars do no longer make it returned on the streets in one piece.
Myth Number 3: A bare bones automobile insurance can furnish coverage for stolen, vandalized or cars damaged by hail or fire.
Debunked: The minimum requirements for auto insurance in most states solely require automobile owners to buy legal responsibility coverage. This potential that you are only protected for any damages you reason to different people. Unless you have comprehensive coverage, you are not absolutely protected from other occurrences.
Myth Number 4: Car insurance plan groups will pay off the policyholder’s mortgage or rent as soon as a vehicle is totalled.
Debunked: Most vehicle insurance provider will not promise to pay off its customers’ loans once insured vehicles are wrecked. However, they will pay the actual money value of the car barring for the deductibles. Any wonderful amount on the mortgage or vehicle rent is the sole responsibility of the policyholder, no longer the insurance plan provider. On the other hand, if you offered hole coverage, you may be able to retailer your self some grief. Gap insurance presents insurance to a policyholder as soon as the insured automobile is wrecked earlier than the mortgage is paid off when the accident passed off or before the term of the lease expires.
Myth Number 5: Sports car drivers get extra violations; therefore, they pay greater premiums.
Debunked: This is not necessarily true. In fact, research indicates that in 2009, people who drove Hummers H2/H3 have 5 times the number of visitors violations than the average vehicle owners. On the different hand, the most “well-behaved” vehicles are people who drove Jaguars XJ. While insurance providers do now not base their rates on this study, the kind of car you very own and your driving history are vital elements that they will consider.