Auto Insurance Facts

Here are some auto insurance facts and myths that we will hopefully clear up today. Because many drivers under the influence of these insurance myths my have a change of thought about their current auto insurance coverage, when the insurance facts come out. So are first myth is one that you have probably heard for years. ..

The color of my car will affect my auto insurance rate

No ! The color of your car – RED for example – will NOT affect your insurance rate, what does influence your auto insurance rate is the year, make, model, body type and engine size of the car you would like to add insurance on. Believe it or not your credit history will play a small role in what your monthly premiums are and of course the condition of your driving record will have a huge impact on what you will pay.

No-fault insurance means, is it not my fault . . . This means that your insurance company pays for any damages regardless of whos at fault.

No . . . sorry to say but that is not how no-fault auto insurance coverage works.

My car insurance rate is set by the government.

No! For most states the government has little or nothing to do with your auto insurance rate, however there are maybe two states that have government regulation for how much a car insurance company can charge. But once again what will have a role in how much you pay for insurance is where you live, the type of car you drive, your credit score, and your driving record.

I recently paid my insurance premium. The new car I just purchased is covered.

Not necessarily. Not so fast there, a large number of car insurance policies require that the policy holder inform the insurance company or the agent within a particular number of days, if coverage is desired for the new vehicle. So if you are planning on purchasing a new car then be sure to speak with your auto insurance company and figure out the details.

Male drivers under the age of 25 pay more for auto insurance.

Yes! Sadly to say male drivers can potentially pay more for car insurance than female drivers. However, across the board, teenagers and mature adults end up paying more for auto insurance largely attributed to the fact that these age groups are typically involved in more auto accidents.

If I lend my car to a friend and my friend is in an accident, his or her insurance company will pay for the damages on my car…right?

Wrong! Your car is your personal responsibility! And believe this, even though you werent physically present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium may possibly increase, or the company might even have your auto insurance terminated.

A persons credit score has an affect on their car insurance rate.

Yes! Your credit score plays a part. Most insurance companies take your credit score into account when deciding to raise or renew your auto insurance coverage.

I am still covered for theft, windstorms, hail and deer accidents even without comprehensive coverage

No! Many drivers believe that if they only purchase collision car insurance – which covers accidents involving objects – that they will also be protected against incidents that involve vandalism, hail, animal accidents and fires. You need to pay for both collision and comprehensive car insurance coverage in order to completely protect your vehicle from all such situations.

Personal auto insurance covers both my personal and business use of my car

No! If you use your own car for business purposes such as ferrying clients, going to and from meetings, or hauling business equipment, then you will more than likely need to extend your personal car insurance to cover your business uses as well. Also if your employees use their personal car while working for you, you will also want to obtain a separate non-owned car insurance policy to cover your business.

Insurance is needed even if I have never been in an accident

Yes! There are a few drivers that get lucky and will never be involved in an accident. However, if by chance you do have an accident; your risk of losing a lot is great. Car insurance is the greatest defense you can have in the event an auto accident occurs. It is also a legal issue; you are required, by law, to have some fundamental form of auto insurance to operate a motor vehicle on public access roads, and failing to do so carries along with it some fairly strict punishments. So be sure to get all the auto insurance facts and compare car insurance rates !