Car Insurance Myths That Put a Dent in Your Wallet

LOS ANGELES - Jan. 14, 2025 - PRLog -- Myth #1 Red Cars Cost More To Insure
What role does car color actually play in insurance rates?
The most common car insurance myth is that red cars are rated higher by insurance companies, which is simply not true. The insurer will never ask you for the color of the vehicle, for one. Also, the color is not considered a risk. However, black cars are involved in more accidents than white or silver cars, which are more visible, especially at nighttime.

Myth # 2: Credit Scores Don't Affect Car Insurance
How much does credit score truly impact premiums?
It's important to remember that not all states allow insurance companies to derive an insurance score using credit scores. In states that do, a low credit score can considerably raise a driver's rate as well as the rate of other household members if they are not excluded on those policies.

Myth #3: Street Parking Doesn't Affect Car Insurance
Does having a garage always lower rates?
Having a garage will result in a lower car insurance rate than street parking. Street parking will weigh against the policy even more heavily if the neighborhood has a high crime rate. It's a good idea to visit nearby overnight garages for pricing and see how much the car insurance rate will be lowered if parked overnight in a garage. It may be a wash when it comes to saving money, but at least the car will be protected against theft and vandalism and the driver can avoid paying a comprehensive insurance deductible to claim losses.

Myth #4: Minor Accidents Don't Impact Car Insurance Rates
What is the impact of minor accidents on long-term rates?
Did you bump a car while backing up in a parking lot and they filed a claim? Your car insurance rate will increase according to the severity of the accident or offense. Your rate will then slowly ...

For all 14 myths and the full article, visit https://smartfinancial.com/car-insurance-myths