User description

After spending a long time in the insurance industry we have come up with a top 10 set of most misunderstood things about auto insurance. These auto insurance myths are some of the most common questions that most folks have about direct car insurance either buying or reviewing their automobile insurance coverage. Its better to learn now before you've got a claim and it's too late.I simply got my 1st speeding ticket my insurance rates are likely to go way up.Reality: If that is your first ticket your rates will most likely not even change. Most direct car insurance providers will give you a pass unless you have any other tickets or claims previously three to five 5 years according to the company.That new Plasma TV I bought last year won't affect my AUTO INSURANCEReality: In the event that you didn't pay the credit card you charged it on then it just might. Almost all insurance firms now use some form of credit scoring when determining not only if you will be eligible for insurance, but also what you would pay. There can easily be 50% difference in rates for an individual with excellent credit to someone with poor credit.I just slammed my car door into my lawnmower parked in my garage, my homeowners policy will cover itReality: Your homeowner's coverage has nothing to do with covering your car. The only way your car will be covered is when you have Comprehensive (Comp) coverage for your car. And then only after you pay you deductible.I simply cracked up my friends car and I tell him don't worry my insurance covers itReality: It'll but only after friends and family policy pays first. So let's say your friend includes a $500 collision deductible and you have a $250 deductible. car-jpn 'll need to give your friend the $500 for his deductible as his insurance provider is Primary. Meaning your insurance will only pay after his policy limits are exhausted. So just remember in this scenario your deductible will not matter its likely to be based on your friends. If you're riding your bicycle and obtain hit by a car your car insurance won't get involvedReality: In the event that you get hurt or killed while riding your bike as well as walking down the street you maybe surprised to understand that you may be covered by your direct car insurance policy. If the person driving the car didn't have any insurance or not enough insurance to cover your injuries, your Uninsured or Underinsured coverage would purchase your claim. Someone just broke into my car and stole all of my personal belongings from it i.e. Cd's, Cellular phone, Christmas Presents, my car insurance will pay for it.Reality: Your car insurance does not cover your individual belongings left inside the car. You will have to file a claim together with your Homeowners or Renters insurance coverage to be compensated for these things. The general rule of thumb is your car insurance is only going to pay for items which are attached to the vehicle I am going to be charged more for my AUTO INSURANCE because my car is red, blue, black, pink...Reality: The color of your car has absolutely nothing to do with your rates. If you want red purchase a red car, if you like black buy a black car. Don't ever let this silly nonsense stop you from investing in a car.