Top Auto Insurance Myths Debunked Article - Finance Insurance Articles

	1888 Articles Home \| Finance Articles \| Insurance Articles	Insurance RSS
Top Auto Insurance Myths Debunked

This article looks at the top auto insurance myths and debunks them in order to provide more information on car insurance that will lead to lower quotes. Myths such as age factors, car type, and the like are discussed.

Author: Grace Oaks

Article Tools:

Some research indicates that America is one of the most uninsured countries in the world when it comes to auto insurance, and one of the main reasons this is lies in how expensive auto insurance is these days. The fact is that America is in a recession, and many Americans can barely put food on the table, never mind consider premiums on an insurance policy. But we need a car to get to work, and so the uninsured issue rises. Unfortunately a lot of those uninsured Americans aren't getting the required coverage due to a series of insurance myths that perpetuate the industry. Here we are going to banish those myths, so that you can get the insurance you need in your budget, to safely protect your family when you are on the road.

Myth 1: Complete collision coverage will still protect me in the event of hail or theft. FALSE. A lot of people know the basic difference between liability and collision coverage, but they make the mistake of assuming that collision coverage covers everything that liability insurance doesn't. This is not the case. Collision covers only your end of expenses in the event of an accident for which you are at fault, and covers nothing else. If your car is stolen, damaged by weather vandalism, you will need comprehensive insurance if you don't want to be out of pocket.

Myth 2: I don't have to cover liability insurance if I don't want to. DEPENDS. Most of the states in America do require liability insurance, but liability laws from state to state are changing, so there may be a chance you don't need liability insurance. However, not getting it will not mean anything to you until you are involved in an accident for which you are found at fault, as you are then put in the line of risk where you could be sued for ALL damages as a result.

Myth 3: If my friend gets in an accident in my car then their insurance will cover everything. FALSE. In most cases this depends on the individual policy's, who is at fault in the accident, and the discretion of the insurance company, however most insurance companies will not take kindly to incidents of this nature. The other driver involved in the accident may have voluntary excess coverage on their car, and this may sort things out, but if they don't, your insurance will be the one responsible. Your friend's insurance does not cover your vehicle, it only covers theirs. This is one reason why loaning your vehicle is a risky move to make, as your insurance score may even be affected if a car accident happens and you were not behind the wheel of the insured car. Your driving record won't be, but you will still see hikes in insurance down the road as a result.

Myth 4: I live in a no-fault insurance state, so if I'm not at fault, that accident last year won't affect my insurance rates. FALSE. Any claim on your insurance record will be a mark against your current score, even if the insurance company never paid anything out on your behalf. All no fault insurance means is that your insurance company will pay the damages regardless of who caused the accident.

These are just a few of the top myths in the car insurance industry that are keeping people from getting the right coverage for their car insurance. If you've been hesitating on getting insurance for reasons such as this, the only way you can get around it is to shop around.

About Author

Grace Oaks has shared his vision and professional opinion on a vast array of topics and http://www.myonlineinsur.com/articles/top-car-insurance-myths-debunked.html is one of the sites where you can read more of Grace Oaks's contributions.

Article Source: http://www.1888articles.com/author-grace-oaks-24697.html