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Some Car Insurance Myths |

Some Car Insurance Myths

April 19th, 2008

some car insurance myths

It is not unusual for certain myths to circulate regarding car insurance policies, and this, of course, has resulted in some confusion. Because of these false assumptions, potential car insurance policy buyers experience some reservations when shopping around for the cheapest deal and looking into the extent of policy coverage.

Myth #1:

Color counts. Of course, it doesn’t! The color of your vehicle is totally unrelated to the price of your car insurance policy. Car insurance companies do not have certain rates for certain colors. Although the make and the model has a bit of influence on your policy, but the color absolutely does not count! So the next time someone tells you to pick a color that is friendly on the cost, tell him all cars are equal when it comes to paint.

Myth #2:

Parking ticket problem. Getting a parking ticket is by itself not a point against purchasing car insurance with lesser cost but non-payment of a parking ticket can get you in trouble! If all parking tickets combined will increase the cost of insurance, then wouldn’t we all be in a fix! Pay your parking tickets promptly to avoid getting negative feedbacks against your diving record. This will also make the renewal of your driving license much more trouble free.

Myth #3:

Speeding means spending. Getting ticketed for speeding once in your driving life does not mean your car insurance premium would instantly skyrocket! Now this is a case to case basis as driving way beyond the allowable speed should deem you reckless and imprudent. Serious offenders have either gotten involved in speeding accidents or have been caught driving a dozen miles over the limit more than twice. One or two minor convictions may be dismissed by the car insurance company, but don’t get your hopes up high though: accumulating multiple speeding tickets in less than a year will be sure to increase your car insurance rate upon renewal.

Myth #4:

No fault means no pay. Some drivers believe that being innocently involved in a traffic accident would rid themselves of any financial obligations. Even though traffic investigators have declared you to be completely fault-free, it is still your insurance policy who ultimately decides. Assuming that your car insurance company finds you without error, your deductible will be waived and you will be cleared. Should your car insurance company find you otherwise (even after the initial police investigation), then you will have to pay.

Myth #5:

Cheap car means cheap insurance. Contrary to the popular belief that the more expensive a vehicle is the higher the rate of car insurance premium, the rate of the premium always depends on several factors that differentiate every automobile. One may have a cheap car but already has a string of claims and a number of repairs in stow – compelling the insurance company to increase the premium. Similarly, one may have a nice expensive car along with a flawless driving record and no history of claims and repairs – prompting the insurance company to lower the premium.

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