1) Red Cars cost more to insure. Color is not a factor in determining your insurance rate. When we determine your auto insurance policy, we take into account make, model, year, age, body type, engine size, and drivers on the policy.
2) Cheaper cars cost less to insure. Even if your car was inexpensive, it could cost more to insurance if it has a large engine, is an unusual model, or if it weighs a lot. Your car will have a lower Comprehensive coverage rate, though, which covers damage due to vandalism, theft, fire, weather conditions, or vehicle collisions with animals.
3) Older cars cost less to insure. Insurance rates depend on a wide variety of factors, including the drivers and annual mileage.
4) One speeding ticket will make your rates skyrocket. You should always follow posted speed limit signs, as there are repercussions for speeding. Auto insurance rate increases are not usually one of those consequences, though. Your total driving history and how long you have held your current insurance policy are important considerations, as well as how fast you were going when you were ticketed when reviewing your policy rates.
5) If someone else drives my car and gets into an accident, I am not responsible. Many times, the auto insurance policy that covers the vehicle is considered the primary insurance, meaning that your insurance company will be responsible for paying damages caused by the accident. There are certain circumstances in which the driver’s insurance company could be responsible for the damage, but as a rule of thumb, consider your policy responsible regardless of the driver.
6) Car insurance rates go down drastically for drivers over 25. Young drivers and old drivers tend to have the most car crashes. When determining auto insurance rates, insurers consider many factors about you, including your age, vehicle information, claims history, and the claims histories of drivers similar to you. While generally your rates will go down after age 25, changes in these other factors could cause your rate to be higher, lower, or even the same when you turn 25.
7) I only need the bare minimum of auto insurance. Sorry, but this isn’t true! Every state has their own requirements. In Florida, the auto insurance minimum liability is 10/20/10, meaning that in an automobile accident, the insurance company is required to pay $10,000 (10) per person injured, up to $20,000 (20). The last number refers to the total coverage per accident for property damage, in this case $10,000. When choosing an auto insurance policy, it is possible - and often recommended - to exceed the state liability minimum.