All car owners need auto insurance, that much is true. However, insurance polices may be complex and with so many wrong information all around, it is much harder to discern facts from fiction. Confusion may lead to expensive mistakes, which is why CarInsurance180 is here to help people who need auto insurance to come to an informed decision. From rates for car insurance to premiums, read through the most common myths about car insurance, debunked:

Myth Number 1: The most expensive cars to insure are red cars.

Debunked: This is a myth that has been around for a long time and that is exactly what it is, just a myth. Colour never played in determining rates for car insurance. However, recent survey shows that approximately 25% of drivers believe that the colour of their car is a factor in determining their car insurance rate, especially if the car is red. The reality is that insurance providers will not even ask the colour of your car when calculating quotes. They are likely to ask the car model, the body type, engine size and the age of your car.

Myth Number 2: New cars are likely to be stolen

Debunked: The fact is, it is the other way around. According to the National Insurance Crime Bureau, the top ten most stolen vehicles of 2008 were:

1. Honda Civic (1995) 2. Honda Accord (1991) 3. Toyota Camry (1989) 4. Ford F-150 (1997) 5. Chevrolet C/K 1500 (1994) 6. Acura Integra (1994) 7. Dodge Ram Pickup (2004) 8. Nissan Sentra (1994) 9. Toyota Pickup (1988) 10. Toyota Corolla (2007)

The reason why most thieves prefer older cars is that they are perceived as easier to steal compared to newer car models. In addition, since most car owners are keeping their cars longer because of the economic instability, it resulted in excellent markets for used parts. Most of the time, when older cars are stolen; they do not make it back on the streets in one piece.

Myth Number 3: Bare bones car insurance can provide coverage for stolen, vandalized or cars damaged by hail or fire.

Debunked: The minimum requirements for car insurance in most states only require car owners to buy liability coverage. This means that you are only covered for the damages you may cause to others. Unless you have comprehensive coverage, you are not fully protected from other occurrences.

Myth Number 4: Car insurance companies will pay off the policyholder’s loan or lease once a car is totalled.

Debunked: Many car insurance providers do not promise to pay off its customers’ loans once the insured car is wrecked. They will, however, pay for the actual cash value of the car, except for the deductibles. Any amount outstanding on the loan or car lease is under the responsibility of the policyholder, not the insurance provider. On the other hand, if you purchased gap coverage, you may be able to save yourself some grief. Gap coverage provides coverage to policyholders once their car is totalled before the loan is paid off when the accident occurred or before the term of the lease expires.

Myth Number 5: Sports car drivers get more violations; therefore, they pay higher premiums.

Debunked: This is not necessarily true. In fact, studies shows that in 2009, people who drove Hummers H2/H3 have five times the number of traffic violations than the average car owners. On the other hand, the most “well-behaved” cars are people who drove Jaguars XJ. While insurance providers do not base their rates on this study, the type of vehicle you own and your driving history are important factors that they will consider.

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