Soon after spending many years in the insurance industry we have come up with a the top 10 list of most misunderstood things about car insurance. These Car insurance for 17yr olds misguided beliefs are some of the most common questions that most people have about direct vehicle insurance either buying or reviewing their auto insurance coverage. Their better to find out now before you have a claim and it’s too late.
I recently got my 1st speeding ticket my insurance rates will likely go way up.
Reality: If this is your first ticket your own rates probably won’t even change. Most direct car insurance guru services will give you a pass if you don’t have any other tickets or claims in past times 3 to 5 years depending on the company.
That new Plasma TELEVISION SET I bought last year won’t affect my Car Insurance
Reality: When you didn’t pay the credit card you charged it about then it just might. Almost all insurance companies now use some form of credit history scoring when determining not only if you will qualify for insurance coverage, but also what you will pay. There can easily be 50% difference throughout rates for a person with excellent credit to an individual with poor credit.
I just slammed my car door right into my lawnmower parked in my garage, my homeowners insurance policy will cover it
Reality: Your homeowner’s coverage has nothing to do with spread over your car. The only way your car will be covered is if you have Detailed (Comp) coverage for your car. And then only after you pay out deductible.
I just cracked up my friends car and I inform him don’t worry my insurance will cover it
Reality: It can but only after your friends policy pays first. And so let’s say your friend has a $500 collision deductible and you have a $250 deductible. You would have to give your friend the very $500 for his deductible as his insurance company is usually Primary. Meaning your insurance will only pay after the policy limits are exhausted. So just remember in this predicament your deductible does not matter its going to be based on your friends.
Should you be riding your bicycle and get hit by a car your automobile insurance won’t get involved
Reality: If you get hurt or maybe killed while riding your bike or even walking outside you maybe surprised to learn that you may be covered by your current direct car insurance policy. If the person driving the car didn’t get any insurance or not enough insurance to cover your incidents, your Uninsured or Underinsured coverage would pay for your own personal claim.
Someone just broke into my car along with stole all of my personal belongings out of it i. e. Cd’s, Cell phone, Christmas Presents, my car insurance will pay for it.
Truth: Your car insurance does not cover your personal belongings left inside car. You are going to have to file a claim with your House owners or Renters insurance policy to be compensated for these items. The reccommended rule of thumb is your car insurance will only pay for items that are placed on the vehicle
I am going to be charged more for my Car insurance policy because my car is red, blue, black, pinkish…
Reality: The color of your car has absolutely nothing to do with your charges. If you like red buy a red car, if you like black obtain a black car. Don’t ever let this silly non-sense stop you from buying a car.
I didn’t have a car going back 2 years, this won’t affect my rates.
Reality: Devoid of continuous car insurance is frowned upon by most direct online auto insurance companies now a day’s. Some companies won’t reprimand you for not having prior insurance. If you don’t have prior insurance policy make sure you have a good excuse like you took the car, or you were in the military, or some other legitimate explanation. Oh and by the way I couldn’t afford my insurance plan is not on that list
Telling a little white sit on my insurance application won’t affect my coverage only ever have a claim
Reality: This is one of the worst issues a person can do. If you lie on your insurance application you will find a good chance you won’t have any coverage when you need it by far the most. You think they won’t find out? Remember these 2 things any time insurance company is on the hook for a ton of money. #1 They are going to start asking questions and the first thing they look with is your application. Wouldn’t you if you were them? Along with reason #2, the insurance companies have more money than lord and they have people working full time to find this stuff out.
Getting a cheaper more reasonable car will be less to insure the main a more expensive car.
Reality: There are a lot of different factors insurance companies make usage of to determine rates, however there are many times were the rate for the more high-priced car is less than the cheaper car. One of the biggest factors to the Comp & Collision coverage’s are how much do auto parts cost. Sometimes on those cheaper cars or the some exotic cars the replacement parts can cost a lot to replace.
So bare in mind the next time your online looking for a cheaper insurance policy, to consider some of your plan of action. There are hundred’s of direct auto insurance companies out there hoping to get in your pocket, just make sure when the time comes you can get within theirs.