Myths About Car Finance and Insurance

Myths About Car Finance and Insurance

Buying a new car is either a treat, or a chore. Some people take great pride in their vehicles, while others view them purely as necessities. The great thing about the motor industry nowadays, however, is that thanks to the numerous car finance deals currently available to us, we can purchase a variety of new and attractive vehicles without bankrupting ourselves in the process. As well as car finance however, there’s also the insurance to consider. When it comes to finance and car insurance, there’s a lot of myths and misconceptions that need clearing up. That’s what we’re aiming to do today. Here’s a look at a few common myths and misconceptions about car finance and insurance.

You don’t need to pay an excess if you’re not at fault

This is one of the most common myths surrounding car insurance, and it’s simply not true. Many people out there seem to think that if they make a claim that wasn’t their fault, I.E if another insured vehicle crashes into them whilst they were stationary, that they don’t need to pay the excess. The truth is that you still need to pay the excess up front. The good news is that most insurers will refund this excess if it is deemed that you were genuinely not at fault. This is why it’s important to remember to go with an excess that you know you can afford.

Car finance is a rip off

When you speak to a lot of people about car finance, many of them will tell you that it is a rip off and waste of money. Yes, the finance companies do charge more than the vehicle is worth because it is from the interest payments that they are able to make their money. These interest rates are usually very competitive and very affordable. Car finance is ideal because it allows you to purchase an expensive vehicle and pay for it over the course of several months/years, by making affordable monthly payments. If you go with the right deal, car finance is actually anything but a rip off.

Some colours of car are more expensive to insure than others

We’re not quite sure where this myth originated from but take it from us that it is simply not true. Some people claim that black cars and red cars, are more expensive to insure than others. We don’t know why people assumed this, but it is simply not true at all. It is incredibly rare for an insurance company to even ask what colour your car is, so please do not avoid red or black cars if you are trying to save money on your insurance because in reality it won’t make any difference at all.

Credit scores don’t matter

When you are looking to pay your insurance on a monthly basis, insurance companies will check your credit rating. After all, they want to know that they are going to get their money on time, and your credit rating will help reassure them. If you have a poor credit score, getting car finance will be much tougher, as will finding affordable monthly insurance deals as well.