There are many motorists that are currently purchasing auto insurance who are paying significantly more for their coverage than they actually need to. In many cases, road users simply don’t have time to explore the huge variety of different subjects that surround the topic of auto insurance and more often than not, they fall foul of some of the most significant coverage myths on the planet!
Surprisingly, premiums can be higher if a vehicle is purchased in a traditional color such as red or blue. Vehicles that are manufactured in striking colors, such as yellow or orange, are more easily identifiable and this makes them less likely to be stolen. Auto insurance quotes on these vehicles are usually slightly lower.
Personal Vehicle for Business Use
Many drivers use their own vehicles for business purposes in the false belief that the auto insurance policy of their company will cover any damages if an accident occurs. Although you are allowed to be reimbursed for mileage costs, you are still responsible for making sure you have auto insurance coverage in place yourself.
Parking tickets increase Auto Insurance Costs
A parking ticket won’t incur any financial penalties but drivers should remain aware that license suspensions can arise if those fines remain unpaid. This is where bad entries on your driving record will occur and your auto insurance rates will most likely increase.
Auto Insurance companies have a Free Reign over Auto Insurance Rates
Auto insurance rates are tightly regulated and are subject to meeting specific requirements. All carriers must submit their auto insurance rates to government agencies so that they can be approved.