December 04, 2011

Automobile Shipping Prices - 10 Auto Insurance Myths You Should Know About

By John Summerlake

The truth with regards to fallacies of several car owners believing that the insurance premium coverage for their new automobile is covered, and maybe the truth just may make you change course.

(1) "No-fault insurance means, is it not my fault?" That means that your insurance company pays for your damages regardless of who's to blame. No they do not!

(2) "Can the color of my car affect my insurance rate?" No! What do have an effect on your rate are your vehicle's year, make, model, body type, engine size, credit history and driving record.

(3)"If I lend my car to a friend and that friend is in any sort of accident, his or her insurance company will pay for the damages...right?" Wrong!

Your car is your responsibility! And you know what, although you weren't present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.

(4) "Is my insurance rate set by the government?" No! The government has nothing to do with your car insurance rate. Where you live, your credit score, marital status and your driving record is what actually affects your premium.

(5) "I recently paid my insurance premium. Is my new car I just purchased covered?"

Not necessarily. Most automobile policies need that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is preferred for the newly purchased vehicle.

(6) "Is it a well known fact that male driver below the age of 25 pay more for auto insurance?" Yes! Male driver below 25 years old can possibly pay more for car insurance than female drivers. However, across the board, teenagers and mature adults pay much more for auto insurance, due in big part because these age groups are typically involved in more car accidents.

(7) "Can my credit score have any impact on my insurance rate?" Your credit score truly does matter! Many Insurance companies take your credit score into consideration when determining to increase or renew your auto insurance coverage.

(8) "Even without comprehensive coverage, am I still covered for theft, windstorms, and hail and deer accidents?" Many drivers believe that if they just buy collision insurance, which covers accidents involving objects, that they will likewise be covered for occurrences that involve vandalism, hail, animal accidents and fires. That simply isn't correct. You need to buy both collision and comprehensive coverage in order to totally protect your vehicle from all of these situations.

(9) "Can my personal auto insurance cover both my personal and business use of my car?"

If you occasionally use your personal automobile for business purposes such as transporting clients, going to and from meetings or hauling business equipment, then you'll more than likely need to extend your personal car insurance to cover your business use too. Plus, if your employees make use of their automobile while working for you, you will want to also get a separate non-owned car insurance policy.

(10) "I have never had nor been involved in a car accident, do I still need automobile insurance?" Yes!

Some drivers are lucky enough never to have been or to be involved in an accident. However, if by chance you do have an accident; your risk of losing everything is great. Car insurance is the very best protection you can have in the event an automobile accident happens. It's likewise a legal issue - you're required, by law, to have some basic form of auto insurance, and failing to do so carries some fairly strict punishments.

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