Aside from the initial cost of buying a car, there are many other financial aspects of owning a vehicle, including having automotive insurance. This is not a fixed rate for all drivers, and your annual premiums will depend on a variety of factors. There are many myths surrounding the details that determine your insurance rates, and PEMCO Insurance, a major car and home insurance provider in the Northwest, recently set out to dispel some of these rumors.

1. Color doesn't matter.
Many believe that choosing a flashier color over a more subtle one could drive up insurance premiums. While a red or yellow car will most likely attract a cop's attention more easily, insurance companies are blind to such differences.

"In fact, our agents don't even ask the color of a vehicle when writing a new policy, so the notion that red cars speed more often and cost their drivers higher premiums is an urban legend," said PEMCO spokesman Jon Osterberg.

2. Insurance covers the car, not the driver.
If you let your friend borrow your vehicle and he or she gets into an accident, your car insurance will typically cover the associated costs if the driver was at fault, not the driver's insurance. In some instances, this may vary, and you may need to review both policies to determine which plan is responsible for paying for any damages.

3. Men don't always have higher premiums.
PEMCO points out that insurance policy rates are not influenced by the sex of the driver for most drivers. Other factors, such as age and amount of time driving, do play a role however. Younger male drivers can pay more than their female counterparts, however. Statistics have shown that new male drivers tend to be more reckless behind the wheel, making them more of a risk than the ladies.

In order for the details of insurance premiums to matter at all, individuals need to own cars. New Jersey Auto Auction carries a wide selection of makes and models to choose from.