Many people are confused about car insurance, from the fact that red cars are riskier and more expensive to insuring a sports car or a 4-door station wagon. You may also be confused about the cost of a 2-door versus a four-door vehicle, or whether high-end imported cars are cheaper to insure than standard American cars. In this article, we’ll tackle some of the most common misconceptions about car insurance and how they can affect your coverage.
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Red cars are linked to more reckless driving
One common misconception about red cars is that they are associated with higher insurance premiums and more work from car accident lawyers. However, this is simply not true. Insurers base their rates on many factors, including the make, model, age, and engine size of the car. There is no proof that red cars cause more accidents, although some studies show that red cars do attract more car thieves. Therefore, car owners should consider all of these factors when choosing a car color.
Sports cars cost more to insure than station wagons
Sporty cars tend to be higher-horsepower vehicles that are typically driven by young males. This extra power and higher speed pose a higher risk, making sports cars more expensive to insure than a station wagon. Additionally, sports cars are more expensive because they have more sophisticated features that may cost more to replace than an average car. All of these factors can push up the price of insurance for sports cars.
2-door cars are more expensive to insure than 4-door cars
When you buy a car, you will probably notice the cost of insurance is higher for a two-door car. Most people associate two-door cars with sports and luxury cars. However, they are actually classed as family vehicles. Two-door cars are also more expensive to insure because they are prone to accidents. While two-door cars have higher insurance rates, you can still find cheap car insurance for two-door cars online.
High-end import cars cost more to insure than standard American vehicles
The first thing to keep in mind when choosing your next car is that high-end imported cars have a higher sticker price than standard American vehicles. As a result, they have higher insurance rates. Luxury vehicles are typically more expensive to repair and more expensive to claim on. Insurers also charge more to repair luxury import cars. The top 10 most expensive vehicles to insure are all European, though some Japanese and American vehicles also make the list.
Comprehensive coverage is not umbrella form of coverage
You might be wondering what comprehensive coverage is. Comprehensive coverage is a type of car insurance policy that helps you pay for damages to your car, other than collision damage. It is often sold with collision coverage, and is commonly referred to as “Physical Damage.” If you don’t own your car outright, you should still have this type of coverage. However, comprehensive coverage is different than collision coverage in many ways. In some cases, comprehensive coverage may be required by the lender or leasing company.
Rental car reimbursements are not covered by car insurance
The first thing to realize is that rental car reimbursements are not typically covered by car insurance. These benefits are add-on coverage that you can add to an existing auto policy. You cannot add the rider to a separate policy; you must have one. The actual use of this benefit depends on your particular policy and company’s terms and conditions. For example, the rental reimbursement benefits may not apply if you are out of town for an extended period of time.