Top 10 Auto Insurance Myths |
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Rickey Pearce
24 November 2009
When you are out looking for car insurance you need to be aware of a few auto insurance myths. This can better help you to understand and choose the right car 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 when purchasing 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 damages caused by problems such as hail, theft and other accidents? This is false, you will need to have comprehensive coverage to be covered for problems such as this. Does each state 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 let someone drive your car and they are in an accident will their insurance pay for it? This is false their insurance will not pay for the damages because it is your automobile. If you are a male under twenty-five years of age, 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 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 that you want to cancel your policy. Will my insurance cover using my car as a business car? This is false, you will need to change you car insurance to cover using the car for business purposes. Will my credit score never change my insurance cost? This is false. It may play a part in your rates being lower when you have a good credit rating.