Auto Repair Salt Lake City: Higher Insurance Rates? Preposterous!Leave a Comment
Whether you pay monthly, bi-monthly, yearly, or are the Batman and don’t pay for insurance, there are a multitude of aspects that can affect your insurance rates. However there are a fair share of rumors out there having to do with what ACTUALLY makes your insurance rates more or less. Your local Salt Lake City BMW Repair is here to dispel some of those preposterous rumors.
Myth: Color Affects Cost
It’s a common misconception: red cars go faster; therefor their insurance premiums are higher. Makes sense, right? WRONG. No correlations have been found between the color of a car and the price of insurance—trust a local Salt Lake City Car Repair like Alex’s Autohaus on this one.
Fact: Make and Model WILL Affect Cost
Insurance companies rate makes and models based on past claims experience. They look over records of your vehicle to determine the likelihood of your vehicle being stolen/involved in an accident to set your insurance rate. For example, CNBC has found that Toyota Corollas, Ford Explorers, and Acura Integras are often stolen, so these vehicles may have higher insurance.
Myth: If you loan your vehicle to a friend, their insurance foots the bill
Even if the friend you loaned your vehicle to had an insurance policy, it’s your policy that’s going to foot the bill. Reason being, insurance companies insure vehicles, not individuals. Your local Salt Lake City Mechanic suggests keeping your vehicle to yourself.
Fact: Age Matters!
According to the great rulebook of insurance policies, the older you get, the less you’re going to pay. Studies show that once you jump the age of 25, your policy’s cost will slowly decrease.
Myth: Tickets will Up Insurance Costs 100% of the time
While it’s not uncommon for insurance costs to go up after a ticket is paid, it’s not necessarily a nail in the coffin for your bank account. In fact, if it’s a minor ticket and you have a fairly clean record, then your insurance company might not make any adjustments.
Fact: Location Determines Cost
Let’s do a hypothetical: let’s say you have a 2003 Toyota Celica, and you live in the heart of New York City. Do you think you’ll pay the same as someone else with a 2003 Toyota Celica who lives in? Probably not. Insurance companies look at traffic volume and population when determining rates.
Myth: Expensive Cars cost more to insure
Yeah, this is true part of the time, but the “loss history” is the real juggernaut. This is when insurance companies look at how many claims they’ve paid on certain cars in the past to determine rates. Sometimes, parts for more expensive cars cost less than parts for cheaper cars. For example, a $30,000 sports car might have more expensive parts than a $45,000 SUV, resulting in more expensive insurance.
If you want more info on what effects insurance costs, then stop by your local Salt Lake City VW Repairlike Alex’s Auto Haus or give us a call at 801-566-6115 today!