10 Auto Insurance Myths
December 12, 2009
When you are out shopping for car insurance you need to be aware of a few car insurance myths. This can better help you to better understand and choose the right insurance for your needs. First, is your new automobile going to be covered right away by your insurance policy? This is true and false with it being covered temporarily until you can inform your insurance company about the new vehicle within a certain amount of time as listed in the contract paperwork. Do people with cars of a certain color such as red pay more money for car insurance? This is false, the color of your car will not have any effect on what you pay for car insurance. The features that your automobile comes equipped with will play a part in the price of your premiums but not the color of the car.
Does normal collision coverage protect you from damage caused by normal problems such as weather, theft, and other accidents? This is false, you will need to have comprehensive coverage to be covered for problems such as this. Do each individual states require that you carry liability insurance? This is false, although a good majority of states require that you do have this type of insurance there are a few that do not. It is a good idea to have this type of insurance whether your state request you to have it or not in case you are in an accident. If you someone else drive your car and they are in an accident, will their insurance pay? This is false their insurance will not pay for the damages because it is your automobile. If you are a male, under 25, will you pay a higher price for insurance? This is false. Males in this age bracket may have higher insurance rates then what a female driver would have although they are not the highest paying insurance customers. Seniors and teenagers usually pay more for insurance.
Does having no fault insurance mean that my insurance premium will not be affected if I should be in an accident that is considered my fault? This is false. Having this kind of insurance will pay for your accidents regardless of who is at fault although it could affect your insurance score and raise your premiums. Should I let my insurance policy lapse if I want to change companies? This is false, with it maybe affecting your credit score. It is best to notify them as soon as possible that you want to cancel your policy. Will my insurance cover using my car as a business car? False, you will need to change your insurance to cover using the car for business purposes. Will my credit score every change my insurance cost? This is false. It may play a part in your rates being lower when you have a good credit rating.
Rickey Pearce is an insurance agent who understands the importance of being informed of your insurance choices. http://www.topratedinsurancecompanies.com offers ratings, reviews and news on top rated auto insurance companies across the United States at http://www.topratedinsurancecompanies.com/auto-insurance.html to ensure that you can make an informed decision.
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