Dispelling the most Common Car Insurance Myths
Posted on: 15Jan,2016
Over the years, we have been subjection to numerous myths that have been perpetuated regarding Car Insurance Clovis. How or why these myths ever got started, who was responsible for their origin, and why so many consumers believe what they do is unknown so our guess is as good as yours. However, we did take the time to list the most common car insurance myths and dispel them so that consumers do not fall prey to false information. Believe it or not, this could save you a lot of money as well as grief.
Car Insurance Clovis companies can cancel your policy whenever they see fit. FALSE – they cannot arbitrarily cancel your policy during its term of enforcement provided you do not give them a valid reason for doing that. There are certain factors that are grounds for cancellation such as fraud or non-payment.
If a friend borrows my car and gets in an accident he’ll be responsible. FALSE – Car Insurance companies do not track the driver of the vehicle. They track the vehicle itself. If he or she gets involved in an accident while driving your vehicle, ultimately you will be found responsible for the accident and any bodily injuries or damages that occur as a result.
If I need a rental vehicle, I will be covered for that automatically. FALSE – rental vehicle reimbursement is not automatically covered unless you have that type of coverage added to your policy. However, the average cost to add this to your premium for rental vehicle reimbursement is roughly $1 or $2 extra per month. Suffice it to say, this coverage is very cost-effective.
My car is automatically covered against storm damage, theft, and vandalism. FALSE – there is no form of insurance coverage that is automatic. You have to add it to your policy and pay for it. Coverages such as collision and comprehensive are not required in California. So if a storm breaks a large tree limb off and it slams into your vehicle, you’re not automatically covered against the damage that results.
My personal property is covered whenever it is in my vehicle. FALSE – if expensive items like a fur coat, golf clubs, or laptop get damaged in an accident or get stolen, you’re out of luck unless they are covered in your homeowner’s insurance policy. In that case, you would file a claim through that insurance provider.
Nobody will steal my car – it’s too old. FALSE – according to a report published by the National Insurance Crime Bureau, the most commonly stolen vehicles were a 1991 Honda Accord, a 1995 Honda Civic, and a 1989 Toyota Camry. So that reasoning is totally wrong.
Additionally, where car thieves are concerned, the preferences in California are Hondas, Toyotas, and other imports. However, Texas vehicle thieves prefer trucks over cars.
No-fault insurance means that it’s not the driver’s fault. FALSE – having no-fault insurance means that you will be covered for lost wages, medical costs, and any immediate expenses. So you’re covered while the insurance companies are arguing over who pays for the accident.
People’s credit scores do not affect the price of their Car Insurance premiums. FALSE – when car insurance companies determine the amount of your premium, there are a number of factors that they base their determination on. One of those factors is your credit score. You’re probably wondering why. Your credit score indicates how well you manage your financial activities and most insurance companies assume that when you have a low score, you are a high risk.
Red cars cost more to insure. FALSE – they although they are commonly thought of as a “hot” ticket, they do not cost more to insure. Your insurance company is more concerned about factors such as the body style, engine size, make, model, and year. In some cases, where the vehicle is parked (e.g. driveway, garage, on the street, etc.) may also enter into the calculation.
Sports car drivers have to pay more than I do for insurance. FALSE – if you have a poor driving history or are classified as being a high-risk driver, you may pay more for your insurance coverage than a sports car owner. Ironically, vehicles such as the Hummer H2 and H3, Scion xB, and Subaru Outlook had higher premium rates due to more violations.