Misconceptions about car insurance

People have misconceptions about pretty much everything. We are simply such a species and we are sometimes too lazy to get the full picture. Sometimes we rely on the knowledge of people who are not actually in possession of knowledge that is much bigger than ours and all of this results in a number of misconceptions that surround everything, including car insurance.

The biggest misconception and one that is perhaps the most understandable is the one that makes us believe that car accidents are something that only happens to other people. If this were true, then no one would be involved in car accidents. The simple fact is that being involved in car accidents does not even have to do anything with your driving. This is the biggest safety issue with driving, the fact that your life and your safety depends on other people as much as on you yourself. Because some people have difficulties truly realizing that they can be involved in car accidents, they believe that there is no need for them to take out car insurance. Do not fall for the same thing and realize that car insurance is something you need.

Another misconception that some people have about car insurance is that their credit rating plays no role in determining their premiums. We are not sure where this misconception comes from, but it is simply not true. Insurance companies are very much interested in your credit history as it provides them with a certain guarantee that you will be paying your premiums and that you are not trying to pull off an insurance fraud scheme. In the end, it is all about money and your credit rating is a pretty good indicator of your financial situation.

Another misconception which could perhaps better be referred to as an unknown is that color of the car affects the premium. This may sound strange to you, but it is the reality. It is one of those much less known factors that go into calculating your premiums. The idea behind it is the following: cars that are painted dark are less visible when the visibility is poor, like during the night. As a result of this, the likelihood of such cars getting involved in accidents is much higher. Strangely enough, having a car that is painted bright is no guarantee because these cars are considered to be more likely to be stolen or vandalized.