Don't believe the myths regarding car insurance floating around, and
you should be objective to be on the safe side. Before you go shopping
for car insurance quotes, you
should understand the purpose of car insurance and other details. If you
believe certain myths, you might be more likely to skip insurance, buy
low quality insurance, or get the wrong types of coverage. Here are the
top six myths regarding car insurance that you can find online.
1) Many people believe that a speeding ticket will drastically increase the amount of their insurance premium
Although it is always a good idea to be a safe driver on the road,
the truth is that one ticket likely will not effect you much, if at all.
If you have not received any other ticket or claim in the past three to
five years (depending on the company), most insurers will give you a
pass on one ticket.
2) How I spend my money doesn't matter to car insurance companies
In many states, one of the factors in determining your car insurance
rate is your credit score and history. This means that if you have a lot
of credit card debts built up, or have missed payments, you might end
up paying more for car insurance. In some cases, a car insurance company
might deny you a policy all together if your credit is low enough.
3) If my car gets damaged on my property, then my home insurance will cover the repairs
Some people skip out on certain coverages because they assume their
other insurance policies will cover the damage. This is usually not the
case - your home insurance policy has nothing to do with your car, and
you will need to purchase comprehensive coverage in order to get it
repaired for this type of damage.
4) If I damage a friend's car, my insurance will take care of it
This is not so clear cut. Your insurance typically will pay for
damages to another person's vehicle, but only after their insurance
pays. The friend's insurance will need to be exhausted before yours
kicks in, which depending on the friend and the policy, might mean you
are paying them their deductible, which could be much higher than yours.
5) If I am hurt while riding my bicycle or walking down the street, my car insurance will not help
In some cases, your car insurance will cover you
if you are hurt or killed while riding a bicycle or walking down the
street. If the person who hits you does not have insurance, or does not
have enough insurance to cover you, than you might be covered under your
own policy if you have purchased Uninsured or Underinsured coverage.
6) My car was broken into and all of my valuables were stolen! Surely my car insurance will pay for them
Your car insurance will not provide coverage for the items left
inside your vehicle. You will need to file a claim with your home or
renter's insurance to get these items covered. Typically car insurance
only covers items that are attached to your car, which can include car
seats and radios.
