After many years in the insurance industry, we have compiled a list of the 10 most misunderstood things about auto insurance. These auto insurance myths are some of the most common questions most people have when buying or reviewing auto insurance direct. You better find out now, before you have any complaints, and it will be too late.
I have just received my first parking ticket and my insurance rates go up significantly.
Reality: If this is your first ticket, the price is unlikely to change. Most auto insurance companies will give you a passport right away if you haven’t had a ticket or any other requirement in the past 3-5 years, depending on the company.
The new plasma television I bought last year doesn’t affect my insurance
Fact: If you didn’t pay for the credit card you used to withdraw funds, you probably have. Almost all insurance companies now use some form of credit check to determine not only if you qualify for insurance, but also what you are paying for. There can easily be a 50% interest rate differential for someone with good credit and someone with bad credit.
I just hit the car door on the lawn mower in my garage. My landlord’s policy covers this
Reality: Protecting your homeowner has nothing to do with protecting your vehicle. The only way to protect your vehicle is with comprehensive protection (comp). And only after receipt of payment will you receive a franchise.
I just crashed my friend’s car and told him not to worry, my insurance covers that
Reality: This only happens after your friend’s guidelines first pay off. Let’s say your friend has $ 500 insurance and you have a $ 250 deduction. This means that your insurance will only be paid after the insurance limit has expired. So keep in mind that in this scenario, your franchise doesn’t matter as long as it is based on your friend.
If you ride a bike and get hit by a car, your insurance will not be used.
Reality: If you get injured or die while cycling or even walking on the highway, you may be surprised to know that you can be covered by full car insurance. If the person driving the car has no or insufficient insurance to cover your injury, your uninsured or underinsured coverage will pay your claim. Someone just broke into my car and stole all of my personal belongings, i. H. CDs, cell phones, Christmas gifts. My car insurance pays for it.
Reality: Your car insurance does not cover your personal belongings that you left in the car. To get a refund for these things, you must file a claim with the landlord’s or renter’s insurance company. As a rule, your car insurance only pays for items attached to the vehicle.
I must pay more for car insurance because my car is red, blue, black, pink …
Reality: The color of your car has absolutely nothing to do with the fare. If you like red, buy a red car; If you like black, get a black car. Don’t let this ridiculous nonsense stop you from buying a car.
I have not owned a car in the past 2 years, this does not affect my price.
Reality: Most auto insurance companies outright disagree that they don’t have annual auto insurance. Some companies won’t penalize you for not having pre-insurance. If you did not have insurance beforehand, have valid reasons, such as: B. To get on the bus, whether serving in the military or for some other legal reason. Incidentally, I cannot afford insurance, it is not on this list
Small lies about my insurance claim will not affect my coverage if I have a claim
Reality: This is the worst thing anyone can do. If you’re lying about your insurance claim, coverage is likely when you need it most. Do you think they won’t know? Keep these two things in mind when hiring an insurance company for a high fee. # 1 They will ask you questions and the first thing they will see is your application. Don’t want to do it where it should? And reason # 2: insurance companies have more money than God, and they have people full time to find out.
Buying a car that is cheaper and more logical means less insurance for a more expensive car.
Reality: There are many different factors that insurance companies use to determine rates, but sometimes the rates for the more expensive cars are lower than the rates for the cheaper cars. One of the most important factors in Comp & Collision coverage is the cost of parts. For these cheaper or more exotic vehicles, replacement parts can sometimes be expensive. So the next time you buy a cheaper insurance policy online, consider some of your options. There are hundreds of direct auto insurance companies ready to fit in your pocket. When it is time to enter, try to enter.