To keep up with the changing times, our technology today is constantly being used for research. In the years before, availing and asking about insurance services was done inside company offices or with agents that are equipped with the knowledge and familiarity of the subject. Today however, you enter a few keywords in the search engine of your computer and you are presented with lists of related materials. Because of social media and other sharing platforms, myths and ideas about obtaining an insurance also resurfaced. And so now you’re caught up with decisions before even applying for your insurance coverage. To lessen the frustration, we’ve listed myths you should forget about car insurance policies.

Myth no. 1 – The color of the vehicle affects the insurance rate.

False. The main factors that will affect your rate will be items that are virtual or are easily understood by both the client and the company. These are factors such as the model of the vehicle, year it was released, current modifications, specifications of the car, and its current selling  rate or market price. The color of the vehicle however does not affect the insurer’s posted rate; this is because it will be hard to justify why a certain color is much more expensive than the other. They say the color of your car is a representation of your personality, so go ahead and be bold with your choice of purchase.

Myth no. 2 – There is little to no difference in buying a premium insurance policy.

From the word or label itself ‘premium’, you are already made aware that this is not the same as your minimum or average insurance policy. Every state has a different mandate on the minimum requirement for car insurances, and being the thrift person you are, you settle for the minimum spend. However, you fail to realize that an insurance policy is not purchased just because it is required, but because it will serve as a safety net  both for you and your passengers. There are many things that can happen even if you try to avoid them; save yourself from future expenses and stress and purchase an insurance that will really set your mind at ease.

Myth no. 3 – Paying in installment is the same as paying in full.

Ask yourself: When did you purchase an item that costed less in installment basis? Never. If you have funds that are ready when purchasing your insurance policy, then a full payment can yield higher savings. The longer your timeframe in paying, the more fees are added on top of the quoted rate. This is because you are using the company’s manpower and service in a longer span of time than paying once. If money is not an issue, go for a full on payment scheme.


Myth no. 4 – Insurance companies couldn’t care less if I do not pay them.


There are times wherein you have a bad experience with an insuring company and you decide to just transfer and apply for a new policy from a different agency, without even notifying the latter than you’ve acquired a new coverage. You therefore stop depositing payments thinking that since they won’t be concerned when you file for repairs, there’s no need to pay them. Well think again. If you are unhappy with your current insuring company, then talk to them and properly pay all dues they present you. Opting out without proper paper work still ties you under contract and so monthly dues will still be charged. Save yourself from further legal matters and headaches by putting everything in ink and writing.

Relax, car insurance policies have reasonable rates determined by rational factors. Forget the above myths, consult with your agent and drive safely.

Categories: Insurance

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