When buying car insurance, whether for a new or a used Honda, there are many factors that come into play to determine your rates. However, it takes a smart consumer to find the best rates for your budget. Buying a used Honda could have higher rates than a new Honda, because much of the rates depend on a driver’s history and not just the car. People looking into buying a new or a used Honda must do their research! Don’t let your wallet or your coverage be what suffers. So, to help inform car buyers about insurance, we have listed some information. Below are a few of the major myths and misconceptions about automobile insurance.
1. Car Color Crisis
People often think that their insurance will go up depending on the color of the car they choose. This is certainly true. However, the color is not one of the primary evaluators for higher insurance rates. Whatever color your car is, whether it is red, blue, or zebra striped, what actually matters is the kind of car that you select. A 4 door car will usually have a lower starting insurance price than a 2 door. Similarly, a convertible may also have a higher starting value than a non convertible. Whether new or used, insurance costs are based on make, model, year, engine size, age of the vehicle, car history and the credit history of the driver. If you have dreams of a cherry red Mustang, don’t let this myth stand in your way.
2. Third Party Coverage vs. Fully Comprehensive
After you choose a cat that has a lower starting rate, one of your next major decision is going to be about third party coverage versus fully comprehensive coverage. This decision matters, especially if you are looking at a longer term contract. A third party may have a lower level of coverage, and is considered “cheaper,” but that is not always the case. One of the biggest factors in taking third party coverage is your age, and driving record. The younger you are, and the worse your record, the higher your premiums will be for a fully comprehensive insurance policy. Young drivers often have third party coverage because of the high premiums and drivers willingness to accept lower coverages. For this reason, many people think it is cheaper, but be sure to compare them to the fully comprehensive plans!
3. Texting Ticket Trauma
With the rise of smartphones has come the rise of texting while driving. This is a very serious topic, and must be addressed, for traffic accidents are a major cause of death. Nearly 1.3 millions people die each year due to traffic accidents, and over 330,000 accidents due to texting and driving. While it is no excuse to text and drive,most insurance companies are not raising premiums because of texting while driving ticket. However, if the texting is related to an accident, there could be an additional increase in premiums.
Max is a consultant for Superior Honda, a premier new and used car dealership in Harvey, Louisiana.
Editor's Note – This is a sponsored post from Superior Honda