Thursday, March 5, 2009

Auto Insurance - Leading Misconceptions

By Chimezirim Odimba

A lot of people have been told things regarding auto insurance and immediately just assumed it was true. Don't put much weight into things that most people tell you when in fact most of it could just be a myth. If something that you heard seems questionable then research it for yourself. If something is a myth then it needs to be exposed!

Your new car is not automatically covered by any existing policies that you might have. Surely, your insurance company would like to insure your new vehicle but they must be informed about it.

It is untrue that all states call for liability insurance by law. Look at that word, "every", for the most part, states would like you to hold liability coverage however some do not. But it is an excellent suggestion to have it.

If somebody is utilizing your vehicle and is implicated in an accident, your insurance is who will offer protection. Your rates will be likely rise as a result.

Many assume that their prices won't go up if they are mixed up in an accident since they have No Fault insurance, this is a myth! No-fault insurance guarantees that your insurance group will shell out for your damage despite whose fault the accident is. An increase in price or a negative mark on your insurance record is never promised to any client.

The top insurance price is not given males below the age of 25. The top rates are given to the elderly and teens since they are implicated in more accidents than others.

Your standard auto insurance policy won't provide you with sufficient coverage if you use your car for business. Part of how your premiums are determined does relate to your credit score.

Inform your insurance agent if you decide to give your business to another company. By doing this you can assure that your credit score will not be effected.

Your standard collision policy will not cover you against damages caused by any weather conditions, accidents that are caused from hitting something other than a person, and theft. You must have full coverage if you would like to be covered for other types of damage since collision will only protect you in the event that you are involved in a car accident. If you are traveling and run into an animal resulting in damage to your car, any collision coverage is useless.

So many people think that it costs more to insure a red vehicle which is merely a myth. In reality, the color of a car doesn't have a bearing on the payment at all.

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