10 Auto Insurance Myths You Should Know About
Author: James M Taylor

The truth about fallacies of many car owners believing that the
insurance premium coverage for their new car is covered, and
maybe the truth just might make you change course.
(1) "No-fault insurance means, is it not my fault?" That means
that your insurance company pays for your damages regardless of
who's at fault. No they don't!

(2) "Can the color of my car affect my insurance rate?" No!
What do influence your rate are your vehicle's year, make,
model, body type, engine size, credit history and driving
record.

(3)"If I lend my car to a friend and that friend is in an
accident, his or her insurance company will pay for the
damages…right?" Wrong!

Your car is your responsibility! And guess what, even though
you weren't present at the time of the accident, you still will
receive a mark on your insurance record and your insurance
premium could possibly go up.

(4) "Is my insurance rate is set by the government?" No!
The government has nothing to do with your car insurance rate.
Where you live, your credit score, marital status and your
driving record is what actually affects your premium.

(5) "I recently paid my insurance premium. Is my new car I just
purchased is covered?"

Not necessarily. Most automobile policies require that the
policyholder notify the insurance company or agent within a
specified number of days, if indeed coverage is desired for the
newly purchased vehicle.

(6) "Is it a fact that male driver under the age of 25 pay more
for auto insurance?" Yes! Male driver under 25 years old can
potentially pay more for car insurance than female drivers.
However, across the board, teenagers and mature adults pay more
for auto insurance, due in large part because these age groups
are typically involved in more automobile accidents.

(7) "Can my credit score have any affect on my insurance rate?"
Your credit score really does matter! Many Insurance companies
take your credit score into consideration when deciding to
increase or renew your auto insurance coverage.

(8) "Even without comprehensive coverage, am I still covered
for theft, windstorms, and hail and deer accidents?" Many
drivers believe that if they only purchase collision insurance,
which covers accidents involving objects, that they will also be
covered for incidents that involve vandalism, hail, animal
accidents and fires. That simply is not true. You need to
purchase both collision and comprehensive coverage in order to
fully protect your vehicle from all of these situations.

(9) "Can my personal auto insurance cover both my personal and
business use of my car?"

If you occasionally use your personal car for business purposes
such as transporting clients, going to and from meetings or
hauling business equipment, then you will more than likely need
to extend your personal car insurance to cover your business use
as well. Plus, if your employees use their car while working for
you, you will want to also obtain a separate non-owned car
insurance policy.

(10) "I've never had nor been involved in a car accident, do I
still need automobile insurance?" Yes!

Some drivers are lucky enough never to have been or to be
involved in an accident. However, if by chance you do have an
accident; your risk of losing everything is great. Car
insurance is the best protection you can have in the event an
automobile accident occurs. It's also a legal issue - you are
required, by law, to have some basic form of auto insurance,
and failing to do so carries some fairly strict punishments.


About The Author: Understanding auto insurance can be easy when
you know what to look for. The free information and quotes visit
http://www.autoinsuranceonlinequotenow.com