Based on a game of possibilities and risks, many myths have been created that today are false. Some were true in the past, others have never been true, and others should simply be relativized.
The world of insurance moves based on statistics, which is what companies use to calculate the cost of a premium according to the circumstances of each contracting party, so that at the end of the year their accounts balance and there are no losses. The car insurance business is based on the fact that the probability that all policyholders suffer an accident must always be lower than that of only a minority who must be compensated.
The more irrelevant this minority is, the bigger the business. On the other hand, if the statistics, which are calculated each year and combined with the company’s records, show an increased risk of accidents rising, the only way to balance the benefit is to raise the premiums of those users who have greater chance of having an accident.
Based on this game of possibilities and risks, many myths have been created that today are false. Some were true in the past, others have never been true, and others should simply be relativized. Here are seven of these beliefs that are anything but immovable.
1. Red and yellow cars pay more
There was a time… But not anymore. The surcharge in the premium for brightly colored cars was based on the belief that they had more accidents because they were preferred by younger drivers and especially men. But the statistics have ended up showing that although it is true that young people are more aggressive and inexperienced in driving, they have accidents without distinction of color in the car.
Come on, they don’t particularly prefer red cars, nor are they necessarily more prone to accidents. On the contrary, many luxury cars are red but their owners are very careful not to suffer the slightest dent. For the account that brings them, given the price of spare parts. Insurers have not paid attention to color for many years now .
2. Women pay less
Women have statistically fewer accidents and therefore used to pay less premium, until a ruling by the High Court of the European Union ruled not many years ago -in 2012- that this fact constituted discriminatory treatment. Now they pay the same rates as men, and they even tend to approach their accident rate, which over time, and awareness in driving, goes down.
3. Having children raises the premium
Car insurance is not life insurance and having minor children does not raise the premium . Another issue is that we have children of driving age and declare that they may drive our car, so the company forces us to sign additional insurance for them and them. But it will never be reflected in a rise in the premium.
4. A second-hand car will always pay little
It will depend on the value of the car and how old it is, since the cost of spare parts can be high -if we want to insure a second-hand luxury car or a highly sought-after collector’s car- or since its market value is practically new, there is no descended.
5. The extras are always included by default in the insurance
The standard extras are covered by insurance. Not so those that we have added, such as new tires, tinted windows, etc. If we make these types of changes, we must notify the company so that they can include them in an annex.
6. My Accident will increases the premium.
It is not necessarily so. Your accident does not increase your premium. Some companies tolerate up to three annual installments without the following year’s premium being increased.
7. If I don’t have accidents, the company gives me a discount and I pay less
Not necessarily. Insurance prices are usually very competitive the first year, but then they tend to go up. To avoid disappointment, the best option is to compare every year, before the renewal, what prices the insurance companies offer for our car.