After spending several years in the insurance industry we have think of a top 10 list of most misunderstood reasons for car insurance. These car insurance myths are probably the most common questions that most people have about direct auto insurance either buying or reviewing their car insurance policy. Its better to find out now before you’ve got a claim and it’s too late.
1. I just got my first speeding ticket my insurance rates are likely to go way up.
Reality: If this is the first ticket your rates probably won’t actually change. Most direct car insurance providers will give you a pass without having any other tickets or claims in the past three to five years depending on the company.
2. That new Plasma TV I purchased last year won’t affect my Car Insurance coverage
Reality: If you didn’t pay the charge card you charged it on then it might just. Almost all insurance companies now use some type of credit scoring when determining not only should you will qualify for insurance, but also what you should pay. There can easily be 50% difference in rates for any person with excellent credit to someone along with poor credit.
3. I just slammed my car door into my lawnmower parked during my garage my homeowners policy will cover this
Reality: Your homeowner’s coverage has nothing related to covering your car, so the only way your car will be covered is for those who have Comprehensive (Comp) coverage for your car. Which only after you pay you deductible?
4. I just cracked up my friends car and I simply tell him don’t worry my insurance will cover this
Reality: It will but only after your pals policy pay first. So let’s say your friend has a 500 collision deductible and you’ve got a 250 deductible. You would have to give your buddy the 500 for his deductible as his insurance provider is Primary. Meaning your insurance will pay only after his policy limits are exhausted. So keep in mind in this scenario your deductible does not matters its likely to be based on your friends.
5. If you are riding your bicycle and get hit with a car your car insurance won’t get included
Reality: If you get hurt or killed whilst riding your bike or even walking outside you may be surprised to learn that you might be covered by your direct car insurance plan. If the person driving the car didn’t have any insurance or insufficient insurance to cover your injuries, youre Uninsured or Underinsured coverage would purchase your claim.
6. Someone just broke into my car as well as stole all of my personal belongings from it i. e. Cd’s, Cell phone, Christmas Provides, my car insurance will pay for this.
Reality: Your car insurance does not cover your individual belongings left inside the car. You will have to file a claim with your Homeowners or Renters insurance plan to be compensated for these items. The general guideline is your car insurance will only purchase items that are attached to the automobile
7. I am going to be charged more for my car insurance because my car is red, blue, dark, pink…
Reality: The color of your car has absolutely nothing related to your rates. If you like red purchase a red car, if you like black purchases a black car. Don’t ever let this silly nonsense stop you from purchasing a car.
8. I didn’t have a car going back 2 years, this won’t affect my prices.
Reality: Not having continuous car insurance is frowned upon by most direct auto insurance companies now a day’s. Some companies won’t penalize you for lacking prior insurance. If you don’t have prior insurance be sure you have a good excuse like you required the bus, or you were in the actual military, or some other legitimate reason. Oh and incidentally I couldn’t afford my insurance is not really on that list
9. Telling a little white lie on my personal insurance application won’t affect my coverage basically ever has a claim
Reality: This is among the worst things a person can do. When you lie on your insurance application there’s a good chance you won’t have any coverage when it’s needed the most. You think they won’t discover? Remember these 2 things when insurance company is on the hook for a lot of money. 1 they are going to start asking questions and the very first thing they look at is your application. Wouldn’t you should you were them? And reason 2, the insurance providers have more money than god and they’ve people working full time to find these things out.
10. Buying a cheaper more reasonable car is going to be less to insure the more costly car.
Reality: There are a lot of different facets insurance companies use to determine rates, however there are lots of times were the rate for the more costly car is less than the cheaper vehicle. One of the biggest factors for the Comp & Collision coverage’s are just how much does replacement parts cost. Sometimes on those cheaper cars or the greater exotic cars the replacement parts can be expensive to replace.
So just remember the next time your online buying cheaper insurance policy, to consider some of the options. There are hundreds of direct auto insurance companies out there wanting to get in your pocket, so just make sure when the time comes you will get into theirs.