Enter your ZIP code:

Car Insurance Quotes Separate Fact from Fiction

by Penny M. Hagerman

 

With everything that demands our time, attention and money these days, no one wants to pay full price for car insurance. But by taking advantage of the Internet and free quotes, anyone can find car insurance quotes that provide a great money-saving alternative: cheap insurance premiums.

To quote cheap car rates, insurance companies request vital information that helps determine risk. But there's a lot of debate circulating about situations some say can affect price. That's why we're here to set the record straight.

 

The Great Debate

 

To help educate and advise shoppers on the subject of car insurance, we'd like to present some fact and fiction issues for debate.

Read them over, get educated on the details that actually affect rates, and gain a solid understanding of the truth behind each issue. It'll make getting insured quick and easy. 

 

DEBATE

FACT OR FICTION?

When a driver gets his first speeding ticket, his car quotes go up automatically.

Fiction. In most cases, car insurers don't raise quotes—or rates—until a driver has multiple violations.

Red cars cost more to insure than cars of other colors.

Fiction. Color is not a factor used to calculate car quotes.

 

Anyone who drives a car with the owner's permission is covered under the car's policy.

Fact. Since a car policy follows the car instead of the driver, anyone who drives the vehicle with permission is also covered in case of accident.

 

Cheaper cars garner lower quotes.

Fiction. If the car has a large or high-performance engine, weighs more than average or is a special-edition model, car quotes will naturally run higher.

Urban dwellers' insurance rates are higher than for those living in the suburbs or the country.

Fact. City dwellers face more traffic, more people and a greater likelihood of car theft.

 

 

Credit rating helps determine car quotes.

Fact. Researchers have discovered a close correlation between credit and risk. Because of this, higher credit scores usually accompany reduced risk (and lower quotes), and lower scores are linked to additional risk (and higher quotes).

 

Insurers can charge whatever they want.

Fiction. Each state requires insurers to state how it calculates rates. Regulators then review this information and ensure guidelines are adhered to.

 

 

The bare minimum in car insurance is usually adequate.

Fiction. If a driver causes an accident that results in a lawsuit—and the car isn't insured adequately—assets could be seized to cover the remaining damages.

 

Insurers group drivers with others who share similar risk characteristics.

Fact. Insurance companies rate drivers based on data collected for other drivers with similar statistics. This is the most solid predictor of risk.

 

 

When a driver purchases a new vehicle, it's automatically covered under the existing car policy.

Fact—but only temporarily. While most insurance companies automatically cover an insured's new vehicle, the owner must let his insurer know of the coverage change during a specified period, as designated by the contract.

 

No-fault insurance means premiums and quotes won't go up if a driver causes an accident.

Fiction. No-fault simply means each driver's policy covers his own damages. However, that doesn't mean more expensive premiums and higher car insurance quotes won't result.

 

List of Articles
No. Subject Author Views
85 Rental Car Insurance: Do You Really Need It? youcomparequotes 17576
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 17901
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16841
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17215
81 How to Get Discount Auto Insurance youcomparequotes 17656
80 Insurance for Van Lovers youcomparequotes 17323
79 Car Insurance That Fits Your Needs youcomparequotes 17057
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17241
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18118
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17062
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19288
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17641
73 Auto Insurance from InsureMe youcomparequotes 17560
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 17914
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18309
70 Buying and Insuring a New Car youcomparequotes 16690
69 Compare Auto Insurance Rates youcomparequotes 17029
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16531
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16630
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17116
65 What's Behind Your Auto Insurance Quotes? youcomparequotes 17243
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16497
63 How to Reduce Car Insurance Prices youcomparequotes 17094
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17314
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16578
60 Auto Insurance Cost & Your Ride youcomparequotes 17110
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16899
58 How to Get the Cheapest Car Insurance youcomparequotes 16803
57 Selecting a Car Insurance Company youcomparequotes 17510
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17117
55 Get the Best Car Insurance Rates Around youcomparequotes 17358
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16380
53 Child Safety Belts Keep Kids Safe youcomparequotes 17060
52 Speeding and Car Insurance Rates youcomparequotes 16758
51 Not At Fault Car Insurance & Accidents youcomparequotes 16900
50 State Auto Insurance Becoming Available youcomparequotes 17179
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17632
48 Car Insurance & Roommates or Family Members youcomparequotes 17214
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16909
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16813
45 SUVs: Minor Collision, Major Damage youcomparequotes 17357
44 Severe Weather Driving Tips youcomparequotes 17082
43 Avoiding Aggressive Drivers youcomparequotes 17978
42 Safety Tips & Car Insurance for Teens youcomparequotes 17060
41 Insurance for Cars: It's Your Choice youcomparequotes 17018
40 Car Insurance Quotes Save You Money youcomparequotes 17079
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 17933
38 Safety Features Save Lives & Money youcomparequotes 16829
37 Curbing Auto Insurance Prices youcomparequotes 16377
36 Teen Auto Insurance youcomparequotes 16653
35 Car Insurance: Your Questions Answered youcomparequotes 16580
34 How to Buy Car Insurance youcomparequotes 17346
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16623
32 Truck Insurance for Your Pride & Joy youcomparequotes 16411
31 How Insuring a Used Car Can Save You Money youcomparequotes 17238
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17114
29 Credit Scores & Car Insurance youcomparequotes 17760
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16272
27 Reducing SUV Insurance Rates youcomparequotes 16801
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17316
25 How to File an Auto Insurance Claim youcomparequotes 16954
24 Avoiding Deer Collisions While Driving youcomparequotes 17424
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16748
22 Auto Insurance Basics That Save youcomparequotes 17177
21 It's Official - Men Are Terrible Drivers youcomparequotes 18666
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17428
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 16951
» Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17207
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 16962
16 Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17332
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16777
14 Your Options in Motorcycle Insurance youcomparequotes 16790
13 The Advantages of RV Insurance youcomparequotes 17167
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34672
11 Insuring Your Teen Driver youcomparequotes 16938
10 The SR22 & Car Insurance youcomparequotes 16434
9 Auto Insurance & Generic Parts youcomparequotes 17141
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18264
7 Drowsy Drivers, Wake Up! youcomparequotes 16433
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17799
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17229
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21300
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16747
2 Auto Insurance Quotes youcomparequotes 17207
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17344
XE Login