The Most Ridiculous Car Insurance Myths Article

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The most ridiculous car insurance myths

Will the color of your car influence insurance rates? Does no-fault insurance mean that you are automatically not at fault in an accident? If you have any doubts answering these questions then you definitely have to read this article.

Author: Davidmayer

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There are some ridiculous myths regarding auto insurance that many drivers are very serious about. And sometimes these beliefs are so widespread that the workers at insurance companies have nothing to do but laugh when they hear a customer worrying about his insurance rates because his car is painted red. To avoid looking hilarious to insurers and to improve your auto insurance knowledge here are 10 most common and weird auto insurance myths you get to hear from drivers.

Myth #1: No-fault insurance makes you automatically not at fault in any accident.
What no-fault auto insurance really means is that the insurer will pay for damages caused by an accident no matter who's fault it was.

Myth #2: The paint color of the car can result in higher rates.
Your insurance rates aren't affected even in a penny by the color your car is painted in. What really affects premiums is engine size, body type, model, make and year of your vehicle as well as your driving record and credit rating.

Myth #3: When someone is driving your car and is involved in an accident, it's his insurance company who covers the costs.

It was your car involved in the accident, so it's your insurer who pays for the damage. However, if that person has a policy it could be used as excess insurance in case the damages caused by the accidents are higher than your policy limits. And another unpleasant surprise is that even if you weren't involved in the accident yourself it will still be included in your record and this often results in premium raise.

Myth #4: The government sets auto insurance rates.

The government has nothing to do with your individual car insurance rates. The insurance department of your state only stables the limits for the insurance companies in what concerns premiums. And the insurer sets the exact rates, which are primarily affected by your driving record, credit rating, marital status and the area you live in.

Myth #5: The credit score has nothing to do with car insurance.

Your credit score is one of the key elements by which the insurance companies sets the rates. Most insurers will take your credit rating into account every time you want to get, renew or change your policy.

Myth #6: Windstorms, theft, hail and wild animal accidents are covered even if you don't have comprehensive coverage.

A large part of car owners think that by purchasing collision insurance (covering only the damage to your vehicle that results in traffic accidents) their cars have the coverage for acts of vandalism, natural disasters and other accidents like fires or theft. This is absolutely wrong. Both collision and comprehensive coverage are required to cover the damage resulted in all of the above mentioned situations.

Myth #7: Not being involved in any traffic accidents means that you don't need auto insurance.
First of all, in most states you are legally required to purchase auto insurance to operate a vehicle. In some states a policy is even required when you only register your car. Still, not being involved in any accidents usually means that you'll get cheap auto insurance, because your driving record directly affects the premiums with your policy.

About Author

David Mayer is a frequent contributor to http://www.findyourautoinsurance.com/ridiculous-car-insurance-myths.html and is a highly regarded writer, having professionally dealt with numerous subjects. Visit the site to read David Mayer's contributions.

Article Source: http://www.1888articles.com/author-davidmayer-16158.html

The most ridiculous car insurance myths