Top 10 Insurance Myths Explored

Engine Size has an effect on your insurance costs:

A myth that’s popular with owners of rotary engine or small-displacement turbo powered cars is that insurance companies use the size of your engine to determine your insurance costs.

According to Justin Herndon from AllState Insurance, that statement isn’t necessarily a myth. “Our rating programs vary by state, but in general, we have separate rating factors to the vehicle make, model and trim level which can then result in different rates by engine size as a result.”

Herndon said that not all insurance companies have such detailed information about the vehicles they insure, so you may be able to get better rates depending on your insurance company adding more incentives for you to shop around for a better price.