Top 10 Misunderstood Things About Car Insurance

Just after spending many years in the insurance industry we have come up with a top 10 directory of most misunderstood things about car insurance. These car insurance myths are some of the most widespread questions that most people have about direct car insurance either buying or simply reviewing their auto insurance coverage. Its better to find out now before you then have a claim and it’s too late.

I just got my 1st speeding admission my cheapest dashcam insurance rates are going to go way up.
Reality: If this is initial ticket your rates probably won’t even change. Most direct automobile insurance providers will give you a pass if you don’t have any other tickets or claims in earlier times 3 to 5 years depending on the company.

That new Plasma TV I acquired last year won’t affect my Car Insurance
Reality: If you didn’t give the credit card you charged it on then it just could possibly. Almost all insurance companies now use some form of credit scoring when determining besides if you will qualify for insurance, but also what you will pay. There can be easily 50{7a6e93498500ab1742eacc89a72d9fabebe8a9401116b0149954497aa7b5fbb1} difference in rates for a person with excellent credit ratings to someone with poor credit.

I just slammed my car entry into my lawnmower parked in my garage, my homeowners insurance coverage will cover it
Reality: Your homeowner’s coverage has nothing to do with covering your truck. The only way your car will be covered is if you have Comprehensive (Comp) policy for your car. And then only after you pay you deductible.

I just chipped up my friends car and I tell him don’t worry my comprehensive will cover it

Reality: It will but only after your friends policy pays first. So let’s say your friend has a $500 wreck deductible and you have a $250 deductible. You would have to give your companion the $500 for his deductible as his insurance company can be Primary. Meaning your insurance will only pay after his plan limits are exhausted. So just remember in this scenario your deductibles does not matter its going to be based on your friends.

If you’re riding your street bike and get hit by a car your car insurance won’t get involved
Actuality: If you get hurt or killed while riding your mountain bike or even walking down the street you maybe surprised to learn that you may often be covered by your direct car insurance policy. If the person driving the car couldn’t have any insurance or not enough insurance to cover your injury, your Uninsured or Underinsured coverage would pay for your maintain.

Someone just broke into my car and stole each of my personal belongings out of it i. e. Cd’s, Cell phone, Christmas Signifies, my car insurance will pay for it.
Reality: Your car insurance does not insure your personal belongings left inside the car. You are going to have to file your claim with your Homeowners or Renters insurance policy to be compensated for items. The general rule of thumb is your car insurance will only pay for items that will be attached to the vehicle

I am going to be charged more for my Automobile insurance because my car is red, blue, black, pink…

Truth: The color of your car has absolutely nothing to do with your rates. If you like purple buy a red car, if you like black buy a black car. Shouldn’t ever let this silly non-sense stop you from buying a car.

I just didn’t have a car for the last 2 years, this won’t affect my favorite rates.
Reality: Not having continuous car insurance is frowned upon by a lot of direct car insurance companies now a day’s. Some companies is just not 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 else you were in the military, or some other legitimate reason. Oh through the way I couldn’t afford my insurance is not on of which list

Telling a little white lie on my insurance application refuses to affect my coverage if I ever have a claim

Reality: That is one of the worst things a person can do. If you lie on your insurance coverage application there is a good chance you won’t have any coverage when it’s needed the most. You think they won’t find out? Remember these 2 things as soon as insurance company is on the hook for a ton of money. #1 They will likely start asking questions and the first thing they look at is your applying it. Wouldn’t you if you were them? And reason #2, the companies have more money than god and they have people working daily to find this stuff out.

Buying a cheaper more reasonable car will be a smaller amount to insure the a more expensive car.

Reality: There are a lot of different things insurance companies use to determine rates, however there are many times were the rate to the even more expensive car is less than the cheaper car. One of the biggest factors with the Comp & Collision coverage’s are how much do replacement parts price tag. Sometimes on those cheaper cars or the more exotic cars the exact replacement parts can cost a lot to replace.

So just remember the next time your online sourcing a cheaper insurance policy, to consider some of your options. There are hundred’s of special auto insurance companies out there looking to get in your pocket, just make sure when the occasion comes you can get into theirs.