Top 5 California Auto Insurance Myths: Buying auto insurance is confusing enough without having to deal with all the crazy myths surrounding it. How does one cut through all these tales of witches and trolls to know what is real and what is fake? The most common auto insurance myths are as easy as:

1. New cars cost more

There is a misconception that new cars cost the most to put auto insurance on. This maybe true if one is trying to insure a new Ferrari over that winter beater from the 80’s. There is one flaw in this myth though. Older cars can topple auto insurance rates.

Let’s say you buy a new sedan. That sedan is produced enemas and millions of these sedans roam the roads. The rate on this car will be relatively cheap thanks to the abundance of them produced. Now, try to insure that antique car. While this car maybe older, it is not so easily replaceable. This adds up to higher auto insurance rates.

2. Car color plays a big role in rates

Ever notice how people always associate bad things with cherry red vehicles. While this color maybe eye catching, it is not high auto insurance rate catching. Just think for a moment when the last time that agent asked for the color of your vehicle. Many only ask for year, make, model, mileage, and driving distance. You could have a hot pink car with dolls plastered all over the outside and the auto insurance agent could most likely care less.

3. New cars sore in theft rates

Auto theft is a key player in those auto insurance rates. Every year new statistics come out on the top ten most stolen vehicles. Did you know that most of the top ten vehicles stolen are often not the years latest and greatest? Some factors include anti theft systems getting better on a yearly basis, older cars can be more valuable, and the abundance of older models. Just because you own a new car does not mean your auto insurance rate will be sky high due to auto thefts.

4. Cars are worth what was shelled out for it

Where this myth came about is a mystery. A vehicle is almost never worth what you paid for it. Some cases the car may actually be worth more than you paid for it. You will quickly find this out when you go to put auto insurance on it.

New cars instantly loose value when they leave the car lot. The same is true for any used car purchased from an auto dealer. Cars are almost never worth the money people put down on them.

5. Credit scores don’t count

The sad truth is this used to be a myth. Credit scores have recently become used more and more by the auto insurance industry. New legislation has passed to allow these companies to base your auto insurance rates on your credit score. That bankruptcy not only means higher interest rates on loans, but it can also mean sky-high auto insurance rates.

Figuring out myth from fact is a rough process. When all else fails, go in and talk to the auto insurance agent. They are the best source for deciphering what is actual fact from something some rumor of ages past turned into a myth of deception.