Myths & Insurance Rates

Don’t be fooled by myths. You can save hundreds of dollars on your insurance rate by knowing the following statements are myths:

1. One ticket won't affect my rate.
2. If I get two tickets, it's cheaper to stay with my current insurance company.
3. If I cause an accident, I'll have less risk of being cancelled if I stay with the same insurance company. And it's cheaper too.
4. A minor accident won't affect my insurance as much as a major one.
5. If I buy a new car, I'll get the best rate from my current insurance company.
6. My broker can quote me the lowest rate.
7. An expensive car means expensive insurance.

All you need to do is examine the spread of car insurance rates between the Hummer and Civic to see how completely mystifying insurance really is.

Hummer and a Honda Civic

This chart shows the spread of rates between 30 insurance companies from the lowest to the highest quote. Most drivers end up never finding the best price, and end up paying hundreds of dollars more.