Business
Mercury Insurance Helps Dispel Common Auto Insurance Myths
There are a slew of common misconceptions surrounding auto insurance that permeate online and via word of mouth. In order to make informed decisions about auto insurance, it's important for consumers to dig a little deeper and refrain from taking these claims at face value.
About this update from Mercury General Corporation
[{"type":"text","content":"Holding On to Common Misconceptions Can Affect Your Rates","length":57,"tagName":"p"},{"type":"text","content":"LOS ANGELES, July 15, 2025 /PRNewswire-PRWeb/ -- There are a slew of common misconceptions surrounding auto insurance that permeate online and via word of mouth. In order to make informed decisions about auto insurance, it's important for consumers to dig a little deeper and refrain from taking these claims at face value.","length":327,"tagName":"p"},{"type":"text","content":""There's a lot of misinformation out there when it comes to auto insurance," said Justin Yoshizawa, Director Product Management State for Mercury Insurance. "We want to help consumers separate fact from fiction so they can make smart, informed decisions when shopping for coverage."","length":306,"tagName":"p"},{"type":"text","content":"Myth #1: Color determines the price of auto insurance","length":53,"tagName":"p"},{"type":"text","content":"It doesn't matter whether your car is "Arrest Me Red" or "Hide In Plain Sight White"— the color doesn't actually factor into your auto insurance costs. The price of your auto policy is based on many factors, such as a car's make, model, its overall safety record and its likelihood of theft. Insurers also take into account the age, driving record and sometimes the credit history of the driver.","length":427,"tagName":"p"},{"type":"text","content":"Myth #2: It costs more to insure your car when you get older","length":60,"tagName":"p"},{"type":"text","content":"In general, rates actually tend to go down as policyholders get older and have more experience behind the wheel, with those in their mid-50s typically paying the cheapest rates before rising again for seniors. However, older drivers may be eligible for special discounts. For example, those over 55 years of age can get a reduction in their auto insurance premium if they successfully complete an accident prevention course (available through local and state agencies as well as through the AAA and AARP). Retirees or those who aren't employed full time — and therefore, who are driving less — may also be eligible for a car insurance discount.","length":648,"tagName":"p"},{"type":"text","content":"Myth #3: Your credit does not affect your insurance rates","length":57,"tagName":"p"},{"type":"text","c...