The way misconceptions get started can be a mystery, but nearly every part of life involves rumors that just aren't true. When these myths impact you financially, it's important to get to the truth when making decisions. Auto insurance is an example of fiction getting in the way of proper protection, as several statements have been passed around so long that people believe them. Here's a closer look at some "facts" you may have accepted without knowing the reality.

What Are Some Common Misconceptions About Car Insurance?

1. Insurance Costs More for Red Vehicles

The most persistent rumor in the industry might be the one that claims owners of red cars have to pay more for auto insurance. The reality is that in most cases, the color of your car has no impact on how your premiums will be calculated.

There is a grain of truth here, though. An expensive custom paint job may increase the value of your vehicle, which could raise your monthly costs. Damage to after-market paint typically isn't covered unless supplemental coverage for vehicle customizations is purchased.

2. High-Tech Safety Features Reduce Insurance Premiums

While an anti-theft device might look appealing to insurance agents because it reduces the odds of a car being stolen, high-tech features that emphasize safety make premium decisions a bit more complicated. While lessening the likelihood of an accident works in the insured vehicle's favor, many of these systems are quite expensive to replace. Advanced driver assistance systems can sometimes increase premiums because insurers must factor their cost into a potential replacement vehicle.

3. Smaller Cars Are Cheaper to Insure

It's common sense to assume that the smaller a vehicle is, the less it will cost to protect it. However, this isn't always the case. For example, figures show that a small SUV is often less expensive to insure than a small sedan, with an annual difference of over $200. 

If you're looking for auto insurance that will clear away all the myths and dishonesty, turn to AiA American Insurance Agency in Birmingham, AL. These agents have been in business since 1986 and partner with some of the most respected insurance providers in the industry, such as Dairyland®, Progressive®, and GMAC®. They're always available to take your call and will customize your policy to suit your precise needs. Call (203) 940-9977 to get a quote or visit their website for additional information on their insurance products.