Auto Insurance Companies don't care about color

KENN PETERS

AUTO NOTEBOOK



Let's say you're going to buy a new car, but you have some concerns about the cost of insurance for your new ride.



Are certain colors more expensive to insure than others? Does vehicle weight matter?



The Drive Group of Progressive Insurance Companies answered some of the most common misconceptions drivers have about insurance, based on the results of a survey of 1,000 drivers.





It turns out there are many myths concerning car insurance.



Car color



Myth. Twenty-five percent of drivers surveyed think the color of their car affects their auto insurance rate.



Fact. Color is not used to calculate auto insurance rates. Information used includes the vehicle's year, make, model, body type and engine size and information about the driver.



Comprehensive coverage



Myth. Forty-eight percent of drivers surveyed thought their car insurance policy's comprehensive coverage protects them in all situations because, after all, it's "comprehensive."



Fact. Comprehensive coverage is one type of protection available on an auto insurance policy. Other examples are collision or uninsured-motorist coverage. Comprehensive coverage pays only for damage caused by an event other than a collision, such as fire, theft, or vandalism; or for weather-related damage, such as hail or water damage; or damage caused when a vehicle collides with an animal. It also provides a rental car if a vehicle is stolen.



Bob Hunter, director of insurance for the Consumer Federation of America, said the word "comprehensive" is misleading, because it means just a small part of coverage. "I don't blame people for being confused," he said.



Rental reimbursement



Myth. Thirty-three percent of drivers surveyed did not know what protection is provided through rental reimbursement coverage.



Fact. Rental reimbursement coverage pays for the cost to rent a replacement vehicle when the insured driver's car is in the shop because of an accident.



Bundling insurance and rates



Myth. Fifty-one percent of drivers say they'll always get a better rate if they "bundle" their insurance.



Fact. Just because a driver buys more than one product from the same insurance company doesn't always mean he or she is getting the best rate available. In many cases, there are savings to be had by talking with an independent agent or broker who can customize insurance.



"We always advise people to get quotes from several companies. If you buy all of your insurance from the same company you will get a discount, but what is the initial cost," he said. "You could be getting a discount and still be paying more,." Hunter said.



Rates and the driver's age



Myth. Sixty percent of those surveyed think rates go down drastically when a driver turns 25.



Fact. Young and older drivers typically have the most car crashes, and car insurance companies' customers have different claims experiences.