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There are many myths about the car insurance industry, some of which have been around for quite a while. If you've been misinformed about your auto insurance, this article attempts to dispel some of those myths. The Color of Your Vehicle Determines Your Car Insurance Rate One of the most enduring insurance myths is that your vehicle's color affects the amount you pay for coverage. People think that red cars cost more to insure than vehicles of other colors, but that just isn't the case. Whether your car is white, black, red, green or yellow, its color has no effect on your premium. Insurers base rates on vehicle age, model, make, engine size and body style, as well as the driver's record, age and credit history. Older People Pay More Another prevalent myth is that insurance rates rise as we age. Actually, people over 55 years of age can usually get reduced rates if they take a defensive driving course. Those past retirement age can get discounts quite often, but rates can rise after the age of 70 because older drivers can be accident-prone. Your Credit History Doesn't Matter Most people don't realize it, but credit score is a determining factor in what you pay each month for car insurance. In some cases, people with bad credit pay twice as much as those with good credit! Some lawmakers are so upset with the practice that they are attempting to pass legislation prohibiting "credit profiling" in the auto insurance industry. You're Not Covered if a Friend Wrecks Your Car If someone borrows your car, does their insurance cover them in the event of a crash, or does your insurer foot the bill? Insurance practices vary by state, but in most cases, your insurance covers the damage. If a friend crashes your car, be prepared to pay more for coverage, even though you weren't driving (or even in the vehicle at the time). The auto insurance industry is full of misconceptions and myths, some of which aren't listed here. If you need information on auto insurance in Birdsboro, PA, talk to Richard I. Hart Insurance today.
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