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Myths Surrounding Car Insurance

Apr 14, 2011

A lot of people believe certain things about how car insurance is calculated.  They have heard stories from a friend or neighbour about how certain things can affect how much you have to pay for your car insurance and in general most of us believe what we are told despite their being no proof.  To be fair however, some of what we are told might actually be based on truth with a little bit added on for good measure.  But some of the things that people believe have no factual foundations whatsoever.  Below are a few of the myths that many people believe when it comes to car insurance:

Myth No: 1 – The colour of your car affects how much you pay.

This couldn’t be further from the truth.  I have heard stories about how white cars more commonly stolen because it is easier to re-spray them but when applying for car insurance you are not even asked what colour your car is.  The application process for car insurance will more than likely ask you things like the make and model of the car, the age of it, the size of the engine etc and how often you use the car.  You are never asked what colour your car is.

Myth No: 2 – An uninsured motor cover will pay for the damages to my car if the person responsible is not insured.

This is something that a lot of people are mistaken about.  While uninsured driver cover will cover the cost of any medical expenses to yourself and passengers in your car if you are injured because of an accident caused by an uninsured driver, the damages to your car will not be covered.

Myth No: 3 – My insurance will be cheaper if I buy a cheap car.

This will only be the case if you are choosing fully comprehensive car insurance and even then it may not make a big difference to the price.  Although it may be a little bit more expensive to insure a brand new car if it was expensive to buy, a cheap car will probably not have the same safety features of a brand new car and this will cause the insurance costs to be just as high.  The size of the engine of the car will also affect the price of the insurance so it won’t matter how cheap the car was if it has a big engine.

Myth No: 4 – I should be paying the same amount for car insurance as my friend who has the same car as me.

Car insurance quotations are based on a lot more than the car that you drive.  The car insurance company has to take many things into consideration when coming up with an accurate quote for you and your car.  For example they will take the age, size and type of car into consideration but also your age, driving history and even your address into account when coming up with a quote.  This means that it is very unlikely that you will be offered the same price for your car insurance as someone else despite driving the same type of car.