Tall tales and misconceptions have long contaminated the information surrounding modern-day automotive insurance. If you drive a car, you should have liability coverage in the least for your vehicle. Additional insurance advice can be sought out through your local insurance companies or representatives. In the meantime, to protect yourself from falling victim to any tall tales or conspiracy theories about your insurance, be sure to cover your tracks with the right knowledge.

Continue below to learn the top 3 myths about car insurance, plus what you can do if you total a vehicle that is not covered under policy in Indiana.

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Top Auto Insurance Myths

Red Vehicles Cost More Money to Insure

Are red cars more expensive to insure? Although a common myth in the automotive insurance coverage, it is not more expensive to buy car insurance for red colored vehicles. In fact, the color of a car has absolutely zero influence on how much you are quoted for coverage. Instead, car insurance quotes are calculated by taking into consideration the make, model, engine size, and body type of the vehicle, plus the age, credit history, and driving record of the listed driver. Additional factors that may apply include the car’s sticker price and safety record, as well as theft statistics.

You Can Avoid Rate Increases By Not Reporting an Accident

Many drivers consequently assume that if they do not report their accident to their insurance provider, they can protect their policy rates from increasing. But this is not necessarily true. Unless you were the only party affected in the accident, there is a good chance your insurance company will find out about the accident whether you report it or not.

If the other driver is injured, they will report the accident with their own insurance company, who will then file a claim with your insurance carrier. Also, if you are ticketed at the scene of the accident, your insurance company will be automatically notified since it will appear on your driving record. Moral of the story here: unless it is a minor incident, you will need to report it to your insurance provider.

Auto Loans are Paid Off By the Insurance Company if You Total Your Car

Do not believe anyone who says your car insurance policy will pay off the remaining auto loan on your vehicle after totaling it in an accident. Whether the accident was your fault or not, car insurance only pays claimants the fair market value of a car, which may not be equal to the remaining loan balance. Fair market value is what the original cost of a vehicle minus depreciation.

For instance, if you purchased your SUV for $30,000, and now have $21,000 left on the car loan, but the fair market value is estimated at $17,000 after you total it, you will be responsible for paying the remaining $4,000 on the auto loan since the insurance company will only pay out $17K.

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The Importance of Catalytic Converters

Your car’s catalytic converter is so important because it filters the dangerous emissions produced by burning fuel. More than just a tailpipe, the catalytic converter is designed with an internal, honeycomb-like structure that inventively eliminates harmful emissions, thus protecting our surrounding environment from pollution. It also prevents your car’s muffler from billowing large clouds of smoke on the road, which can be very dangerous to other drivers.

Cost to Replace a Catalytic Converter

To get straight to the point, catalytic converters are not cheap. Because they are such an essential automotive component designed to perform a critical to perform such critical tasks, they must be manufactured from high quality, precious metals like platinum and titanium. For this reason, they can only be so cheap.

On average, you can expect a catalytic converter to cost anywhere between $800 and $2,200 if purchased brand-new. This however does not include the cost of labor and any necessary parts required to perform the catalytic converter replacement job. When all said and done, the total cost to replace the catalytic converter can be as high as $3000. If you are purchasing a used catalytic converter, you can expect to save anywhere from 10 to 20%. However, you will still need to pay an auto repair shop to perform the work for you.

When Catalytic Converter Cost Exceeds Car Value

Sometimes, catalytic converters are so expensive they exceed the current market value for the actual vehicle. For this reason, it doesn’t make sense to replace the catalytic converter. Instead, it is recommended to turn your car over to your insurance carrier, or seller to a local Indianapolis cash for cars company. When you sell your totaled car to a local junkyard buyer, you get paid instant cash on the spot, which can be put toward a new vehicle purchase!

Are you ready to sell your totaled vehicle for cash on the spot? Contact Benjamin’s Junk Cars at 317-218-7133 to sell your junk car in Indianapolis for cash on the spot! We serve all of Central Indiana.

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Do Not Believe These 3 Myths About Car Insurance Coverage

Top Auto Insurance Myths

Red Vehicles Cost More Money to Insure

You Can Avoid Rate Increases By Not Reporting an Accident

Auto Loans are Paid Off By the Insurance Company if You Total Your Car

Is it Expensive to Replace a Catalytic Converter?

The Importance of Catalytic Converters

Cost to Replace a Catalytic Converter

When Catalytic Converter Cost Exceeds Car Value