Home > Education > Insurance > Should You Buy That Red Sports Car?
red sports car

Should You Buy That Red Sports Car?

There may be several deciding factors, but this isn’t one of them

It seems that lots of Americans could use a refresher course on what automobile insurance covers and what it doesn’t cover.

For example, 44% believe driving a red car leads to higher insurance rates, according to a study conducted for insurancequotes.com. Of course, that’s not true. Car color has no effect on car insurance premiums. Yet 53% of millennials believe it does, as do 45% of college graduates and 42% of Americans with a household income of $75,000 or more.

Another popular myth is that your insurance doesn’t cover car repairs resulting from an accident in which you were at fault. It does, but only 56% know it. Again, most millennials got it wrong.

Does car insurance replace items stolen from a vehicle? No, but 34% of Americans believe it does.

(Property stolen from a car is covered by homeowners and renters insurance — go figure.)

Does your location affect how much you pay for car insurance? Yes, but 17% of those surveyed didn’t know this. (Rates are higher in areas where car thefts and accidents occur more frequently.)

Finally, does car insurance pay for mechanical repairs to your vehicle? No, but 14% think it does.

It’s important that you have proper insurance protection — and that you know what your policy does and doesn’t cover.

Talk with a Financial Advisor

No Cost. No Obligation.

Single Step Form Articles

  • What is the approximate value of all your investments and savings, not including your home or other real estate? Investments and savings include your retirement accounts, stocks and bonds, funds and savings accounts. We can help you move your financial life forward no matter where you are in your journey.

By clicking submit you are agreeing to our Terms of Use and Privacy Policy.

Schedule Your Free, No Obligation Consultation

You May Also Like:

  • Couple sits in chairs on beach holding hands
    Article
    Combining Finances: Tips for Newlyweds
    Read More
  • Man looks at computer
    Article
    How the CARES Act Can Help You
    Read More
  • Edelman Financial Engines Decorative Triangle Background
    Article
    What Do You Think Your Spouse Is Thinking?
    Read More