Although many drivers believe that the color of a car influences how much it costs to insure it, Progressive Insurance is seeking to debunk that myth, along with several others. The company recently conducted an online survey to uncover widespread beliefs about auto insurers.
In response to the survey, 25 percent said that car color indeed affects their rates. Younger drivers are nearly twice as likely as older drivers to incorrectly think this (44 percent versus 23 percent). Drivers in New England are most likely to believe that color matters (33 percent), while drivers in the Pacific region are least likely to (22 percent).
“Color is not used to calculate auto insurance rates,” Progressive assures U.S. motorists. “Information that is used includes the vehicle's year, make, model, body type, and engine size, as well as information about the driver.”
Another mistaken belief among more than half of the survey respondents is that car insurance rates are not regulated and that insurance companies can charge whatever they want. More women (57 percent) than men (51 percent) think that this is true. “Each state has regulators who review the information companies collect, as well as the rates they charge,” noted Progressive. “Insurers cannot deviate from those rates.”
Fuel efficiency is a factor in setting rates, according to 17 percent of drivers, while 28 percent were unaware that, in general, insurance companies consider vehicle weight when determining premiums. Sixty-three percent of drivers wrongly believe that new cars are always more expensive to insure than older cars.
Comprehensive coverage is a source of confusion for 48 percent of the respondents, who believe that such coverage protects them in all situations because, after all, it is “comprehensive.” Women are more likely than men to think this is true (51 percent versus 44 percent).
One out of three did not know that rental reimbursement coverage pays for the cost of a rental car if a driver's personal car is in the shop as a result of an accident. Of those, 13 percent think that it covers them if they get into an accident with their rental car while on vacation, 10 percent said that it covers the cost of a rental if their personal car is in the shop for mechanical repairs, and 10 percent said that it covers rental car costs for someone else when they are at fault for the damage to the car.
“Car insurance is complicated stuff,” said Rick Crawley, product development general manager, Drive Insurance from Progressive. “Adding to the confusion are the myths floating around out there. It's important for drivers to have accurate information so that they can make more informed decisions.”
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