Car Insurance Quotes - Facts and Fiction

With so many things that demand our time, money, and attention nowadays, nobody wants to pay a high price for auto insurance. But by taking advantage of the internet and free car insurance quotes, pretty much anybody can find auto insurance quotes that could potentially you money on your insurance premiums.

For those out there considering researching to see if you are paying too much for your car insurance, lets find out how much truth there is to the many things that people have on their minds when getting free auto insurance quotes.

Fact or Fiction?

* When a driver gets his or her first speeding violation, the quotes go up.

This is fiction. In many cases, insurers don't raise quotes or premiums until a driver has many violations.

* Red vehicles cost more to insure, leading to higher quote prices.

This is fiction. Contrary to popular belief, color is not a factor used to calculate auto insurance quotes.

* Anybody that drives a car with the owner's permission is covered on the insurance policy.

Fact. Since an car insurance policy is for the car instead of the driver, anyone who operates the vehicle with the permission of the owner is also covered.

* Cheap cars get cheaper insurance quotes.

Fiction. If the car has a big engine or is considered a high performance car or sports car, the quotes will naturally run higher regardless of the age of the vehicle.

* Urban auto insurance quotes are higher than for those who live in rural areas.

Fact. Those that live in the city have to deal with more traffic and higher risks of theft than those who live in rural areas. This translates to higher car insurance quotes to those living in the city.

* Insurers look at your credit rating when calculating auto quotes.

Fact. Insurers have discovered a close correlation between your credit, and the risk you pose to them. Because of this, the higher your credit score is, the likelyhood of you getting a cheaper car insurance quote is better.

* Auto insurance companies just charge whatever they want.

Fiction. Each state requires insurance companies to disclose how they calculate your car insurance rates. Regulators review the information to make sure that they meet state required guidelines.

* The lowest coverage on your vehicle is adequate.

Fiction. If a driver is at fault in an accident that leads to a lawsuit, and the car is underinsured, your assets could be seized to cover the damages that were not covered by your insurance.