A Red Car Costs More to Insure
The first myth that a red car is more expensive to insure than that of another colour has not been found to be true. So many things go into determining a person’s car insurance rates, and the vehicle is part of the equation but colour is not. For example, car insurance companies are interested in the make and model of the car, how many miles are driven, where the car is parked and driven and also whether the car has anti-theft devices. If the vehicle has features that make it safer to drive such as anti-lock brakes, the car’s owner will receive lower rates, even if the car is red.

Parking Tickets Increase Car Insurance Rates
Some people have several parking tickets, and they worry that their car insurance rates will be affected by them. These people can stop worrying because parking tickets do not affect car insurance rates at all. On the other hand, tickets for moving violations, such as speeding tickets, do have a negative affect on car insurance rates. Parking tickets may indirectly affect car insurance rates because failing to pay them makes it difficult for people to renew their driver’s licenses.

Speeding Tickets for Slower Speeds Are Not As Bad As Those for Higher Speeds
Drivers have a belief that if their second speeding ticket is for driving 5 kph over the speed limit, this is not going to affect their rates because their first speeding ticket was for driving 10 kph over the speed limit. It depends on when these tickets were received. If the first ticket was from five years ago, the insurance company may not raise the rates for the second ticket, but if these tickets were received within one year of each other, the auto insurance company will often place these drivers in a higher risk category and charge higher rates.

Drivers Not Criminally At Fault in An Accident Don’t Have to Pay Their Deductibles
Drivers who have not been determined to be criminally at fault during a car collision believe that they will not be obligated to pay their deductibles, but this may not be the case. People can be found not to be criminally negligent but at the same time were the cause of the accident, so they will be required to pay their deductibles. If the other driver is eventually found to be the one who caused the accident, the driver not at fault will receive a refund.

An “Act of God” Is Not Covered
Policy holders are often confused about the wording, “act of God.” They often believe that damages caused by an act of God will not be paid by the car insurance company. The truth is that if a car is damaged by a particularly treacherous storm, these damages are covered by the car insurance policy. The confusion results because the words “act of God” are not present in the car insurance policy, so when people are reading over their policies to find out if damage caused by a flood is covered, they will need to look for the actual word “flood.”

Comparing Quotes Doesn’t Help Someone Under 25
Some people believe that seeking quotes from more than one car insurance company will not result in lower rates for people under the age of 25. This actually isn’t true either. People under age 25 can find a better deal just by seeking quotes from several companies. While one company may charge younger drivers more for their premiums, another may offer a break for a younger driver who has not had any accidents or tickets. The chance younger drivers have for finding lower rates is large enough to make comparing several quotes worthwhile.

The Employer’s Insurance Policy Covers the Employees
A very important myth that people must understand is a myth is that an employer’s car insurance policy covers the employees’ vehicles when they are in the process of performing their work duties. This myth is also untrue. Furthermore, when people are driving their vehicles for their jobs, they are not covered by their own personal car insurance policies. They would need to have a commercial auto insurance policy to be covered while they are in the process of making deliveries.