Jan 30, 2013
Like any other industry, there are many myths surrounding auto insurance. All of them are about increased premiums because of a generalization about the car, but few of them are true.
This list of 5 of the most common auto insurance myths is geared to perpetuate the truth, so you don’t limit your insurance possibilities on misleading assumptions.
Despite popular belief, insurance companies are not worried about the color of your car. There’s some worry that a red car attracts the cops’ attention.
Whether or not that’s true, the color of your car isn’t going to change your risk factor, so don’t worry about the color when you go to buy a car.
That’s not always true. Would a ’65 Shelby GT350 cost less to insure than a basic model 2006 Dodge Neon?
Of course the Shelby is going to cost more. That car houses almost 300 horses on 8 cylinders under the hood, making it a sports car to the bone.
The Neon only boasts 132 on a four-cylinder engine, making it a commuting car. The car doesn’t approach the same engine size or capabilities as the Shelby.
It would not be fair to assume that the Neon is a more at-risk vehicle because it’s newer. Age can sometimes be indicative of a lower price, especially if the car has depreciated significantly over the years.
That’s not the main factor though. Insurance companies look at the overall capabilities of the car, not just its age.
The worry behind this is if you haven’t insured a friend on your policy, that friend takes the car and totals it, your insurance won’t cover you.
When you give any non-excluded driver permission to drive, it becomes the primary insurance for that driver. The insurance follows the car in this way, not the person driving.
If your friend is at fault in an accident, you can expect to file a claim, pay a deductible and possibly suffer a rate increase. Health issues to your friend might be deferred to her coverage.
If she’s not at fault, then you simply file a claim against the offender’s car insurance policy and no harm’s done. Lending your car to your friend isn’t going to nullify your insurance coverage.
Always check with your provider to verify this before you hand your keys over just to be 100% positive how it works. Also check to see that your friend has a valid license and insurance of her own.
Many think that since elderly are having trouble with their vision, memory and reflexes that they’re going to have to pay higher insurance premiums.
Although these factors are considered, senior discounts are available to about the age of 70. The idea is that their wealth of experience actually makes them safer drivers.
After about age 70, that assumption begins to deteriorate and rates go up. The good news is they likely won’t see any drastic increases until after about 70 years old.
That’s just not how it works.
Specific plans cover certain things and you need to know what those are. Liability covers you from the lawsuits of people or property you injure.
Comprehensive and collision covers your vehicle. Find out what coverage is available and consider what you need.
Don’t assume that having basic coverage will take care of you in every situation. These are 5 of the common myths of auto insurance.
Don’t fall for their tricks in the future. Wickline Insurance offers auto insurance in Beckley.
Wickline strives to make sure their customers are well educated on their Beckley auto insurance policies. Find out how else they can help you today!