Originally published August 20 2005
Myths about car insurance still pervade
by Mike Adams, the Health Ranger, NaturalNews Editor
A recent online survey of 1,000 drivers reveals that people still believe that the color of the car influences how much it costs, that comprehensive coverage protects drivers in all situations and that car insurance companies are unregulated states.
The color of a car influences how much it costs to insure it, Comprehensive coverage protects drivers in all situations because, after all, it's "comprehensive," and car insurance companies can charge whatever they want.
-- Myth: Car insurance companies consider vehicle color when determining rates.
Survey Says: Twenty-five (25) percent of drivers surveyed mistakenly believe that the color of their car affects their auto insurance rate.
-- Myth: Car insurance rates are not regulated and car insurance companies can charge whatever they want.
Survey Says: More than half of those surveyed (54 percent) did not know that each state has a regulatory body that oversees insurance companies operating within that state.
Fact: Each state has regulators who review the information companies collect as well as the rates they charge; insurers cannot deviate from those rates.
Fact: Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.).
Survey Says: One out of three drivers surveyed (33 percent) did not know what protection is provided through rental reimbursement coverage.
Fact: Rental reimbursement coverage pays for the cost of a rental car if a driver's personal car is in the shop as a result of an accident and he or she needs a replacement vehicle.
Fact: Young and older drivers typically have the most car crashes and different car insurance companies' customers have different claims experiences.
At Drive Insurance, for example, crash frequency starts to decline when a driver reaches their mid to late twenties.
However, when developing an auto insurance rate, insurers generally consider a variety of other information about the driver in addition to their age, including information about their vehicle, their past claims history and the claims experience for other customers like them.
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