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Are thieves targeting your new car?

thProbably not, according to Insure.com. Choosing a red car won’t mean higher insurance rates, either.

These are just two pervasive myths out there, according to the insurance-quote site. While new cars certainly do get stolen, professional thieves are much more likely to steal older models and part them out, and color is not considered when companies determine rates.

“I hope no one passed up the red Miata they really wanted because they thought the insurance would be more expensive,” says Amy Danise, editorial director of Insure.com.

The company surveyed 2,000 men and women about 10 common insurance misunderstandings. How well does your understanding of that industry stack up against theirs? Answer the other eight true/false questions and find out.

Pop quiz: Define ‘comprehensive’

1. Home insurance should be based on my house’s real estate market value.

2. If I initiate a car accident with extensive damages to others, my insurance carrier will cancel me immediately

3. It’s cheaper to insure a small car than a larger one.

4. The Affordable Care Act (also known as Obamacare) will let carriers base insurance rates on where I suffer from heart disease, hypertension, cancer or other conditions.

5. I should make sure to get comprehensive auto insurance because it covers everything.

6. If my friend borrows my car and wrecks it, his or her insurance will cover the damages.

7. The Affordable Care Act dictates that I take my employer’s health insurance plan.

8. Out-of-state speeding tickets aren’t a problem – it’s not like they can follow me home.

Questioning assumptions

All eight statements are false. If you didn’t know that, cheer up: A lot of other people didn’t, either. As many as 52 percent of those surveyed believed they were true.

In all questions except one, male respondents were more likely to be wrong. The one exception was the red-car myth, with 52 percent of women believing that such vehicles cost more to insure.

The moral of the story? Don’t believe everything you hear and/or question your own assumptions about insurance.

“These misunderstandings can lead to financial loss,” Danise says. “We hope the survey results open people’s eyes to their true risks and insurance gaps.”

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4 Comments

  1. From what I recall when I was pricing cars for insurance, the one time I bought new, the color had nothing to do with the cost. Tt was the 2-door vs 4-door comparison. So that red Miata you passed up was more expensive but specifically more than the red 4-door something counterpart. 🙂

  2. I love that you busted several myths about insurance. The red car thing is one of the most popular for sure! I think what people don’t realize is that it comes down to your specific car. Could a large car be more expensive to insure than a smaller car? Absolutely! But the opposite could also be true. There are more factors that go into insurance than people think. Ultimately, if you’re a safe driver with a good record and you’re over 25, you shouldn’t have high insurance, but you should always shop around! Great post!

  3. Never heard that red cars cost more to insure but always hear they get pulled over more often.

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