After spending many years in the insurance industry we have come up with a top 10 list of most misunderstood things about car insurance. These car insurance myths are some of the most common questions that most people have about direct car insurance either buying or reviewing their auto insurance coverage. Its better to find out now before you have a claim and it’s too late.
I just got my 1st speeding ticket my insurance rates are going to go way up.
Reality: If this is your first ticket your rates probably won’t even change. Most direct car insurance providers will give you a pass if you don’t have any other tickets or claims in the past 3 to 5 years depending on the company.
That new Plasma TV I bought last year won’t affect my Car Insurance
Reality: If you didn’t pay the credit card you charged it on then it just might. Almost all insurance companies now use some form of credit scoring when determining not only if you will qualify for insurance, but also what you will pay. There can easily be 50% difference in rates for a person with excellent credit to someone with poor credit.
I just slammed my car door into my lawnmower parked in my garage, my homeowners policy will cover it
Reality: Your homeowner’s coverage has nothing to do with covering your car. The only way your car will be covered is if you have Comprehensive (Comp) coverage for your car. And then only after you pay you deductible.
I just cracked up my friends car and I tell him don’t worry my insurance will cover it
Reality: It will but only after your friends policy pays first. So let’s say your friend has a $500 collision deductible and you have a $250 deductible. You would have to give your friend the $500 for his deductible as his insurance company is Primary. Meaning your insurance will only pay after his policy limits are exhausted. So just remember in this scenario your deductible does not matter its going to be based on your friends.
If you’re riding your bicycle and get hit by a car your car insurance won’t get involved
Reality: If you get hurt or killed while riding your bike or even walking down the street you maybe surprised to learn that you may be covered by your direct car insurance policy. If the person driving the car didn’t have any insurance or not enough insurance to cover your injuries, your Uninsured or Underinsured coverage would pay for your claim.
Someone just broke into my car and stole all of my personal belongings out of it i.e. Cd’s, Cell phone, Christmas Presents, my car insurance will pay for it.
Reality: Your car insurance does not cover your personal belongings left inside the car. You are going to have to file a claim with your Homeowners or Renters insurance policy to be compensated for these items. The general rule of thumb is your car insurance will only pay for items that are attached to the vehicle
I am going to be charged more for my Car Insurance because my car is red, blue, black, pink…
Reality: The color of your car has absolutely nothing to do with your rates. If you like red buy a red car, if you like black buy a black car. Don’t ever let this silly nonsense stop you from buying a car.
Tafseel Link : http://vidyoplay.com/7897-2/
I didn’t have a car for the last 2 years, this won’t affect my rates.
Reality: Not having continuous car insurance is frowned upon by most direct car insurance companies now a day’s. Some companies won’t penalize you for not having prior insurance. If you don’t have prior insurance make sure you have a good excuse like you took the bus, or you were in the military, or some other legitimate reason. Oh and by the way I couldn’t afford my insurance is not on that list
Article Source: http://EzineArticles.com/4819595