Here are a few of the major myths about car insurance quotes and rates, to help you make an educated decision about the coverage you choose for your automobile.
A speeding ticket will make your car insurance rise.
This is false. One ticket is not enough to make your rates go up, nor is it enough to make your quote higher when you’re looking into new plans. Multiple violations, however, are a different story. If you have multiple tickets, your rates/quotes could be higher. Depending on the type of violation, it could be a small increase (such as a few speeding tickets) or an extremely high increase (such as more serious violations/accidents/losing your license).
Cheaper cars get cheaper quotes.
Not true. What IS true is that new cars, that are right off the lot, will have higher quotes, because full coverage insurance is required. The actual dollar price of the car has no bearing on the quote. Age is also a factor, but whether or not you drive a Honda or a Lexus does not determine the price of your quote.
Insurance quotes vary so much because the insurance company can charge whatever they want.
False. While rates and quotes DO vary, companies are required by the state to submit their rates to regulators and must adhere to certain guidelines.
The color of your car is always a factor.
Most of the time, the color of your car is irrelevant. If you drive a red sedan your rates aren’t necessarily going to be higher than the person driving the white sedan. If you drive a sports car, or another ‘high risk’ vehicle, however, the color may be a small factor. Only certain companies care about this information, however.