The process of buying insurance is complicated, tedious, and can be frustrating if you are a newbie. The whole aspect of figuring out how insurance premiums are calculated is mind-boggling. That is why there is a lot of false information and myths about auto insurance. However, if you live in or around Cathedral City, CA, Dynamic General Insurance Services can help provide you with accurate information. Here are a few common myths that we thought you should know.
Red cars are pricier to insure
The notion that red cars cost more to insure has been there for years. There is a prevalent assumption that this color significantly impacts premium calculations as the red color is associated with aggressive driving and speeding. However, as convincing this myth may look, it is not true. Whether your car is pink, purple, or green, it doesn’t matter; insurance companies are more concerned about the model, engine size, and year.
Older drivers pay more
Many people think that auto insurance works like life insurance, where the older you get, the higher the premiums. While age matters, it is not necessarily a cost determinant. In fact, it is the exact opposite. Older drivers are more likely to be eligible for special discounts than their younger counterparts.
Small cars cost less to insure
It is common knowledge that small items cost less than larger items. While this may be true, it doesn’t apply to auto insurance. Insurance companies have to put various factors into consideration when calculating your auto insurance premiums.
Your insurance policy protects you and your car
Auto insurance does not work that way. The liability insurance covers damage or injuries sustained by another driver in an accident where you are at fault. If you got injured in the same accident or your car got damaged, you may need to fund your medical bills as well as the car repairs.
We hope this article helped clear myths and offered crucial information about auto insurance. For more information, visit Dynamic General Insurance Services in Cathedral City, CA today!