6 Car Insurance Myths Debunked

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We like to think of ourselves as everyday heroes – always working to make car insurance easier. Today we’re tackling car insurance myths and setting the record straight on a few common car insurance misconceptions.

Car insurance myth #1: Red cars cost more to insure

According to Faber Birren, the noted color psychologist, red is the most dominant and dynamic of all colors. But contrary to popular belief, red cars are no more expensive to insure. Car insurance companies (Esurance included) factor in your car’s year, make, and model — but never the color of your car — when calculating your car insurance rate. So red cars may be hot, but they won’t burn a hole in your savings when it comes to insuring them.

Car insurance myth #2: Credit scores don’t count

Credit scores matter when you buy a house, a car, or make other major purchases, and they matter when it comes to your car insurance. To determine insurance rates, most car insurance companies use credit scores to compute credit-based insurance scores. Generally, the higher your credit score is, the higher your credit-based insurance score will be, and the less you can expect to pay for car insurance.

Car insurance myth #3: All car insurance policies are the same

Policies vary greatly depending on the insurance carrier and the amount of coverage selected. To see this in action, get a free comparison quote from Esurance. In just minutes, you can compare rates from many leading car insurance companies to see which plan and which company offers the most value for your money. You can also see firsthand how changing your coverage limits affects your premium.

Car insurance myth #4: U.S. car insurance coverage is valid in Mexico

While it’s true that you can drive in Mexico with a valid U.S. drivers license, your U.S. car insurance policy won’t protect you once you’re south of the border. Mexican authorities don’t recognize American property damage and bodily injury liability coverages, and most collision and comprehensive coverages are considered invalid as well. So if you plan on driving south, make sure you have international car insurance.

Car insurance myth #5: Marriage doesn’t affect your car insurance

Marriage is life changing; you know that. But did you know that it also affects your car insurance? Since tying the knot usually augments your assets, you want to make sure that you’re able to protect your increased finances in the event of an accident. Plus, when you insure more than one car on the same policy, many car insurance companies (Esurance among them) will give you a discount.

Car insurance myth #6: Thieves target new cars

Just because new cars are shiny and eye catching doesn’t mean they’re the most targeted by thieves. According to the National Insurance Crime Bureau (NICB), in 2009 the 3 most stolen vehicles were: the 1994 Honda Accord, the 1995 Honda Civic, and the 1991 Toyota Camry. If you only have collision coverage, drive an older vehicle, and live in a hot spot for vehicle theft, you might want to consider comprehensive coverage for better protection.

Now that you know what’s a car insurance myth and what’s not, make sure you have a policy that’s really tailored to you specifically. If you need help figuring out how much insurance you should have, contact your insurance company or use our handy Coverage Counselor®. Of course, you can always call us 24/7 at 1-800-ESURANCE (1-800-378-7262) to get real, live coverage advice from our experts.

 

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