Next to your own personal record, the car you choose has the biggest impact on your insurance costs. Cheap insurance is possible if you select the right vehicle. Some common myths may prevent you from getting the best deal.
People often expect their car insurance to increase when they buy a newer vehicle, but this is not always the case. In fact, if you are going from a less safe vehicle to one that is considered to be safer, you may find that your premiums actually go down.
It is true that safety features can help reduce your premiums, but only if they have been proven to avoid car accidents. For example, back-up mirrors have been determined to help people avoid backing into other cars or property. Air bags and other devices have also helped to reduce car accidents. Other features require more study, especially the newer ones.
Many people think that traditional family cars mean cheap insurance over trucks or other vehicles. In reality, SUVs and trucks often have lower premiums than family sedans. There are many reasons for this. People sit higher up in a taller vehicle, which can lessen the severity of injuries in an accident. Some vehicles are made with heavier materials, especially with work trucks and other heavy-duty automobiles. Of course, more passenger cars are being made with crash-resistant beams and other features that can lessen the amount of damage or injury.
It is often thought that red cars cost you more in insurance premiums because they are more likely to be stolen. This is a myth; insurance companies do not care about the color of your vehicle. What does matter is if you live in a high crime area where thefts are more likely to occur. You can reduce the cost of your insurance premiums by using anti-theft devices. Before you install any yourself, talk to your insurance agent and dealership to find out which devices are recommended.
This is not really a myth but something many people believe so that they can have just pick cheap insurance. While you are not required to carry what is known as full coverage insurance unless your lender requires it on a car you are financing, don't assume that "not mandatory" is the same thing as "not necessary." Your choice of coverage depends on how much your car is worth and if you can afford to replace the vehicle on your own.
Getting cheap insurance doesn't mean getting the lowest rates. Instead, you must factor in the out-of-pocket expenses you may incur without enough coverage. That is why it is a good idea to compare rates and talk to a knowledgeable agent who can help you make the right decision. Getting the lowest rates is not the only thing to consider when choosing the best policy to provide adequate coverage.
You may have heard that insurance companies now use credit reports in part to determine your rates. You wonder why your credit makes a difference and how much impact your credit score could have on your monthly car insurance premiums. This is an important concept to understand to help you get the best deals on insurance quotes.