Car insurance is a tricky subject to fully understand if you aren’t an auto insurance agent. There are hundreds of fine details that need further explanation to comprehend, let alone how the premium rate is calculated. Remember, that there are a lot of factors that affect the premium rate of an auto insurance policy. To add to the confusion, there are a lot of misconceptions as well. We’re here to debunk these myths so you can get a better understanding of how your policy was priced.
I am only a small factor
Nope. It’s actually the other way around. You are the main factor that affects the pricing of your auto insurance policy. There are some factors that you cannot control, like your age or your occupation at that moment. But there are plenty of factors that you can control as well. Your driving record is the most important of them. Also, you need to keep a good credit history to keep your premium rates down.
The car insurance price lists I see online are accurate
Actually, they are accurate. The problem here is, they might not be accurate for you. Whenever these websites put out a list of which cars are the cheapest or the most expensive to insure, they can only choose a certain demographic to generate the numbers for. Remember, you are the main factor that affects your policy’s price rate. So one price list does not apply to everyone.
The bigger the vehicle, the cheaper the policy
It is a popular assumption that SUVs are cheaper to insure because being in a bigger vehicle will keep you safer than being in a small car. However, the size of the car, which is supposed to be the reason why your premiums will be lower, can be seen as a bigger risk if you hit anything on the road. So, you cannot use the size of the vehicle to negotiate for your premium rates.
