Top car insurance myths

Top 5 car insurance myths

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Water doesn’t drain the opposite direction in the Southern Hemisphere, the Great Wall of China is not the only man-made object you can see from space, and no matter how many movies say otherwise, we use way more than 10 percent of our brains.

Auto insurance is a complicated topic, so it’s not surprising that there’s bad information floating around out there. It doesn’t really matter which direction a toilet flushes in Sydney, but unlike the myths above, getting it wrong with your insurance can lead to disaster. So without further ado, here are Goji’s top five coverage myths and misconceptions.

1. Color costs

Between the increased premiums and extra traffic tickets, red cars must cost a fortune, right? Wrong. Insurance companies consider a lot of factors, but your car's color isn't one of them. They're no more likely to be in an accident, and contrary to what you've probably heard, red cars don't even get more traffic tickets, according to Snopes. (But gray cars do, strangely enough.)

2. Up in smoke

Smoking is bad for your life, health, and homeowner's premiums, not to mention your body, but it has no effect on most auto policies. Some surprising things do though, like your career, credit rating, and gender.

3. Thieves don't want old cars

On the contrary, car thieves loooove the '90s. The most-stolen car of 2012 was the 1996 Honda Accord, followed by the 1998 Honda Civic, according to the NICB's Hot Wheels list, while new Hondas are rarely stolen. Why? Part of the reason is that new cars have more security features, but that's not all.

There's a massive market for cheap car parts, but not many people are interested in buying a stolen car. Vehicles made in the 1990s are beginning to break down and require replacement parts, which might no longer be in production, while new cars are still running fine. So even though it’s counter-intuitive, crooks can potentially profit more from stealing a 20-year-old Honda than a brand new BMW.

4. Car insurance covers people, not vehicles

Wrong. The insurance is in your name, but it follows the car. If you loan your vehicle to a friend who happens to be a terrible driver, it's still covered under most conditions. On the flip side, your insurance is also liable for any damage your friend causes, even if he has his own insurance. You may want to be choosy with who gets to drive your car.

5. My car's contents are covered

Nope, sorry. Your homeowner's or renter's policy might covers items that were damaged or stolen while in your car, but your auto insurer isn't on the hook, even if it happened in an accident.

Think shopping for insurance has to be a chore? That’s a myth too. Goji’s rate estimator lets you compare a dozen top auto insurance companies side-by-side in just 2 minutes. If you’d rather talk than type, call 877-357-5692 to speak with an agent who can discuss your situation, apply all the discounts you deserve, and help find the right coverage for you.

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