Most people eat up the myths that are being spread around about the auto insurance industry without ever taking the time to find out the truth. Believe it or not, auto insurance companies aren't the villains our parents and local law enforcement have tried to paint them to be. And if you know the facts behind the fiction of your auto insurance policy you're going to have a best odds chance of finding the coverage you need at a price you can afford.
Myth #1: You're going to pay a fortune for your car insurance the first time you get a speeding ticket.
While this might make great leverage for concerned parents trying to make sure their teenager keeps it under the speed limit, in truth this is almost complete fiction. In most parts of the country your first speeding ticket is going to have almost no effect on your auto insurance rates, since you'll have the opportunity to appear before a judge and request to complete a driver's improvement course and/or community service rather than having the conviction on your record.
If you are given this option, take it. Once you've met the judge's requirements it will be like the ticket never happened. Auto insurance companies will never find out about it. But even if you don't have this option a single speeding ticket isn't going to kill your auto insurance rates.
Myth #2: Red cars cost more to insure.
Whoever came up with this little piece of fiction probably owned a hot red sports car that cost them considerably more than their old clunker to insure. News flash: Auto insurance companies could care less what color your car happens to be. You're going to pay just as much to insure a green or a black one as a red one. The make and model of your car, on the other hand, is going to have a significant impact on the cost of your insurance and should be taken into consideration if your premiums are going to be a problem.
Myth #3: Teens will always have to pay more for auto insurance, regardless of how talented they are behind the wheel.
Sorry guys, this is absolutely true. Teenagers (and other drivers who have had their driver's license for less than five to seven years) are over sixty percent more likely to have an accident than more experienced drivers, which means their auto insurance rates are going to be higher regardless. Don't despair though! Finishing a certified driver's ed course and getting good grades will help compensate for that, and after a few years of ticket free living you'll be enjoying the same rational rates as everyone else.
Myth #4: It costs more to insure a souped up car.
This depends almost exclusively on your auto insurance company, what type of car you have and how far the upgrades have raised its replacement value. The only thing your auto insurance company cares about is what the odds are of you filing an auto insurance claim and how much they're going to pay if you do. If you can keep both of those numbers low you're going to enjoy reasonable auto insurance rates no matter what you've done to your car.
