5 – “Drive a cheap car, it’s cheaper to insure”
It’s probably not true, I’m afraid. It all depends on your current car’s value. Get a Kelly Blue Book, or go online to get an idea of the value of your car. If it is less than $3,000 you might consider adding collision coverage. It doesn’t matter if you can’t afford a down payment on a new car, it might be worth having collision coverage on an older car. Also, a low-cost car will almost always be an older car. Older cars are likely to have fewer safety features such as anti-lock brakes or airbags. These features will likely increase your premiums, and you could lose all of the savings that you have made. Make sure you have enough coverage to cover you for an accident. It is not difficult.
4: “Just lie about where you live to get great deals”
Although it may seem tempting, if your parents’ address is in a good neighborhood but you’ve moved away, you could be in serious trouble. It’s possible to get a lower rate. However, if your insurance company discovers that you lie about the address, your policy will be cancelled. Although no insurance company would like to pay claims, they will because you have a contract. You can lie on your insurance policy to invalidate it.
3: “Repaint your vehicle; some colours are more attractive than others”
Okay, so we all know the story about black and red cars being more costly to insure. No? According to the story, young drivers tend to drive red and black cars more aggressively, which in turn leads them to pay higher insurance premiums. While insurance companies will not disclose all factors used to calculate young driver’s car insurance rates, it’s obvious that it’s which caryou drive that is more important than what color it’s. What do you think is more expensive to insure: a red Honda Civic Coupe or a brown Chevy Chevy Camaro Coupe.
2: “Just get the minimum legal coverage to save money”
A reputable insurance company would never advise you to take out the minimum legal coverage in order to save money. It’s the definition of a false economy. 40% of road accidents involve inexperienced young drivers. There are many high-priced cars on the roads today, so the minimum coverage is likely to fall far short in the event of an accident. You could lose a lot more than your car if you don’t have enough coverage. You can save money on car insurance for young drivers by increasing your deductible or limiting your driving. This will allow you to avoid financial risk and help you to be more financially responsible.
1: “Get married, and save money on insurance”
This absurd little gem is scattered all over the internet. It’s certainly the most stupid. This logic is not entirely unreasonable. Insurance companies view married people as being more responsible, and they can offer lower car insurance premiums. You might be able to save money on your car insurance by getting married. You’re not!
