The Myth About Red Car Insurance Dispelled

The Myth About Red Car Insurance Dispelled

Many car owners, especially those who own red cars, seem to think that they pay more for insurance than other car owners whose car colors are different. This is as per a study that has been done by insurancequotes.com which is a site that allows insurance comparisons to be done. This site currently undertook a study whose findings show that, about forty four Americans seem to think so.

However, this seems to a myth, especially as per the insurance companies who state that, as per the factors that are taken into consideration for insurance premium calculation, the color of a vehicle is not considered. The communications vice president of the Insurance Information Institute stated that, it is a myth that auto owners seem to think so. Indeed, at the time when a quote is being asked for, the insurance agencies usually do not ask for the color of one’s vehicle. The factors that are considered at the time of forming a quote for vehicle insurance include factors like year of manufacture, make and model as well as body type, age and size of the vehicle. Even though these are facts, the study indicates that about fifty percent of the Millennials seem to think that a red car costs more in insurance. Among these are mostly college graduates as well as young earning Americans whose household income on an annual basis averages around $75000 or more.

The results of the study could be indicative of the lack of knowledge that the Americans have about how a car insurance quote is arrived at by the insurance agencies. Many Americans, about forty four percent, believe that insurance coverage is often not provided if the driver is at fault in case of accidents or damages to vehicles. However, as per insurance agencies, most agreements pay for repairs even when the accident occurs due to a fault of the driver.

There are other factors too, that are considered at the time of insurance premium calculation which is not known by most Americans. For those who live in urban areas with higher risks of accidents, thefts and vandalism are bound to pay a higher rate than those who live in rural areas. The other factors like litigation frequency and costs, medical care and auto repair costs also came into the equation at the time when a quote is provided for auto insurance. Around thirty four percent Americans feel that their auto insurance will cover burglary, but it might not be so.

References:

www.insurancequotes.com

www.cnbc.com

September 22nd, 2015 by