5 Auto Insurance Misconceptions

When you need the absolute best auto repair and detailing, 1st Class Auto has you totally covered. But right after an accident, there are some insurance situations you need to understand. Even before you buy, get all the information you can to make the right choice. Don’t be fooled by these auto insurance misconceptions:

XYZ Car is Always Cheaper/More Expensive to Insure

The fact is, there are so many factors outside of the make and model that claiming a specific car or brand is always more expensive or cheaper to insure is incorrect. The list of factors that go into calculating a rate/premium can go on for pages, and the car is only one line out of many in that equation.

Online Insurance is Cheaper than Local Insurance

People often think that the insurance they get online is more competitive than smaller insurance agencies. The truth is that online insurance companies calculate a rate based on an equation with no negotiating room. Local agencies know what is necessary for your specific area and can be more willing to negotiate a price based on your needs. If you want the best price, you have to shop online and in-person, making sure to negotiate and compare along the way.

Auto Insurance Covers Theft

In most cases, unless you have comprehensive coverage, a basic auto insurance policy will not cover the theft of your vehicle. Typically, your car insurance will only cover damage caused to your vehicle or damage you cause to other people’s vehicle. If you believe that your insurance covers theft, be sure to call your insurance agent to make sure.

Colors Determine Insurance Cost

Pick whatever color you like for your car because it will not affect the cost of your insurance. If you still don’t believe it, check out this Forbes article to see which types of cars are most likely to receive a ticket (which can affect your insurance cost).

Credit Scores Do Not Affect Premiums

Believe it or not, your insurance agency does consider your credit history when calculating your insurance costs. Even if your credit is bad though, you don’t need to worry too much. Your credit score is by no means a major factor in determining insurance premiums. It is just one of many minor items that are used in the equation we talked about earlier.

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