When it comes to car insurance, there are many things that are going around that are meant to affect the rate, yet in all reality they have no affect at all. These types of things are those that most people have heard their entire life growing up and they come to think of these as facts, when they are most definitely not facts at all. When thinking that these are the truth, though, it can make some people miss out on the car of their dreams or just not really know much about their car insurance, which is going to affect the person should they ever have to rely upon their insurance to pay for an accident or something along those lines.
One of the first myths that most people believe is that the color of your vehicle does affect the rates of your car insurance premium. Most people think that the red vehicles on the market are going to have higher premiums, just because these cars are statistically known to be in more accidents. However, the reason for these statistics is that there are just more red cars that are put onto the sellers’ market than any other color out there.
Other people think that if they are driving their car for work that their employer will pay for their accident, should they get into one. This only works if the person is driving a car that is a part of the fleet of cars that the business has. If the person has their own personal vehicle that they use for work, they are going to have to keep their own coverage on these in order to ensure that the vehicle is protected. And it is their own coverage that will pay for the accident, should one happen. There have been numerous people that have gotten into an accident with this mindset and ended up having to pay for everything out of their own pocket because they believe that this is the case. This is something that should be discussed with your boss to ensure who is responsible for the coverage on the car.
Everyone that has insurance knows that some tickets are going to increase their premium. However, parking tickets is not one of these things. A parking ticket is not going to increase the premium of auto insurance at all. However, if you get enough of these parking tickets to warrant having your license suspended, then the suspended licensed will affect the premium that you are paying with your car insurance premium.
One of the most common myths that people believe is that if they lend their car to a friend, and they are involved in an accident, that the friend’s insurance is responsible for paying for the damages. This is completely wrong. The insurance that a person has in on their vehicle, thus no matter that is driving, the insurance is meant to cover that vehicle. Your friend may be the one that gets into the accident, but it is your insurance that will pay for this for the damage. This is why many people are reluctant to loan their car out to those that they know.
Many people believe that car insurance companies basically make their own rules and that they can charge whatever they please towards each individual that goes with their company. This is not exactly true, as every insurance company out there has to go by the regulations that are set forth. Thus, this is why when comparing rates, the majority of the time you will find that most companies are going to offer rates that are fairly similar to one another. Overall, if you know what is true and what is false, you are going to have better knowledge of car insurance and this will help you to avoid problems that could happen.Admin