You have probably heard at least one piece of urban folklore regarding some aspect of your daily life. Folklore is a bit of “wisdom” that gets repeated over and over as true, even though it usually has little or no basis in reality. It typically develops when people try to make sense out of a process they perceive as being complex, without bothering to investigate the facts.
Even something as routine as buying car insurance comes with its own folklore. Here are some popular myths:
Myth 1: The color of your car affects your insurance rate. This bit of folklore developed out of another popular myth – that people who drive red cars get more speeding rickets than other drivers. Insurance companies, in anticipation of this phenomenon, supposedly base a driver’s insurance rates on the color of the car they are driving, which is coded into the VIN number of your vehicle.
Truth: Both myths are false. An insurer takes a number of factors into consideration when determining rates, but color isn’t one of them. Driving a red car isn’t necessarily a precursor to a speeding ticket and the VIN number doesn’t provide any information about a vehicle’s color.
Myth 2: It’s more expensive to insure a two-door car than a four-door one.
Truth: It’s possible. Depending on the way companies classify cars when they analyze loss, injuries and claims, something as simple as the number of doors on your car could affect your insurance rates. Thus, one company may associate a relatively low history of claims with a particular model, while another company may have experienced nothing but trouble with the same vehicle.
Myth 3: Parking tickets affect your rates.
Truth: Parking tickets alone won’t affect your insurance rates. However, unpaid parking tickets could lead to license suspension which would affect your insurance rates.
Myth 4: If I lend my car to a friend and they wreck it, their insurance will cover the damage.
Truth: Your car, your responsibility! And even though you weren’t in the car at the time of the accident, you will still receive a mark on your insurance record and your premium could possibly increase.