Vehicle Insurance Myths and Realities

Vehicle Insurance Myths
a) Red cars value additional to insurance
The color isn’t an element accustomed calculate automobile insurance rates — we do not even raise you what color your automotive is after you get a quote fromus Factors that do matter area unit the year, make, model, body type, engine size and age of your automotive, further as drivers on your policy.

Vehicle Insurance Myths and Realities

b) One ticket can build my automobile insurance rates go up
Sometimes this can be true, however, in several cases, you have got to urge 2 tickets before your rate goes up. Your driving history, the length of your time you have been insured with an organization and the way quick you were going after you were cited will have an effect on whether or not your rate will increase or not. Keep in mind that a speeding ticket may not be the sole reason your rate increases, as several factors are considered when reviewing them.
c) Auto insurance rates aren’t regulated, so auto insurance companies can charge what they want
Each state requires auto insurance companies to file how they calculate customer rates, and insurers cannot deviate from these filed rates. Each state also has regulators who review that information and the rates companies charge.
d) I only need the bare minimum amount of car insurance
Many states have minimum car insurance requirements, but the minimum amount of required insurance may not cover all of your costs. If you cause an accident that results in a lawsuit and your insurance limits don’t cover all of the damages, your assets could be pursued.
e) Cheaper cars cost less to insure
If your cheaper car has a large engine, weighs a lot or is an unusual model, it might cost more to insure that a more expensive small car. However, if you have a cheaper car, you will pay less for Comprehensive coverage, which covers damage caused by vandalism, hail, fire or animal accidents.
f) If someone driving my car causes an accident, I won’t be held responsible
It’s possible you’ll be financially responsible for an accident — even if someone else is driving your car. In most states, the car insurance policy covering the vehicle is considered the primary insurance, which means that the insurance company for the vehicle must pay for damages caused by an accident. Even so, it’s still possible that the driver’s insurance company could be responsible for some of the damages. Why? If the vehicle’s insurance limits are too low and don’t cover all the damages, the driver’s insurance may be next in line to pay for the remainder of the damages.
Since policies and laws differ by state, knowing how your state’s insurance system works could influence who drives your car.
g) Older cars are cheaper to insure
Car insurance rates for all vehicles vary depending on several factors, such as who drives a vehicle and its annual mileage. For older vehicles, many drivers choose to carry only Liability (BI/PD) coverage, which covers injury or damage to other people or property, no damage to the insured person or vehicle. Liability only coverage may be cheaper than insuring a vehicle with Liability, Comprehensive and Collision coverage.
h) My car insurance rates will be higher if I’m a smoker
Your car insurance rates will not be higher if you smoke — we don’t even ask you if you’re a smoker when you get a quote from us.
i) My car insurance rates will be similar to my neighbor’s rates
Car insurance rates are individually determined, so factors such as age, driving record, type of vehicle and marital status are considered. Each person’s situation is unique, and car insurance rates will vary because of this.
j) Car insurance rates go down dramatically when drivers turn 25
Younger and older drivers typically have the most car crashes, and customers of different car insurance companies have different claims experiences. When determining auto insurance rates, insurers generally consider a variety of information about you, including age, vehicle information, claims history and the claims experience of other customers like you.

Vehicle Insurance Myths and Realities
While it’s generally true that rates will go down when you turn 25 if all information about you and your vehicle remains the same, changes in one or more of the other pieces of information used to calculate a rate could lead to you getting a higher, lower or the same rate when you turn 25.
k) Comprehensive coverage protects drivers in all situations
Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.) Comprehensive coverage pays only for damage caused by an event other than a collision, including the following. Remember, there are also steps you can take to limit your risk. Check out tips to stop car thieves.
Fire
Theft
Vandalism
Weather hail, floods, etc.
Vehicle collisions with animals
l) I can use Rental Reimbursement coverage to rent a car for my vacation.
Unless your insured car is in the shop as the result of an accident, you won’t be able to use Rental Reimbursement to rent a car for vacation. Depending on the limits you selected when you bought your policy, Rental Reimbursement coverage pays for some or all of the cost of a rental car — but only when your insured car is in the repair shop because of a car accident.
Vehicle Insurance Realities
a) People who live in the city pay more to insure their cars than people outside the city.
Within a state, city dwellers usually pay more for car insurance than rural residents. Cities have a higher risk for claims due to more traffic, more people, and more theft, that usually means that higher automobile insurance rates.
b) associate accident will build my rates go up, although it isn’t my fault

Vehicle Insurance Myths and Realities
Accidents that area unit your fault have a right away result in your automobile insurance rate. looking on the circumstances, you furthermore may is also placed in an exceeding cluster of consumers United Nations agency receive higher rates, although the associate accident is not your fault.
c) Progressive can cluster drivers with others United Nations agency share similar risk characteristics
Common observe within the automobile insurance trade is to rate drivers supported information collected from alternative drivers United Nations agency share similar characteristics, that overall could be a solid predictor for automobile insurance rating.
d) Anyone who can drive my automotive with my permission is covered if I even have insurance
If you permit somebody to drive your automotive, that person is roofed by your policy. detain mind that if the one who drives your automotive does not have insurance associated causes an accident, you’ll be command liable for the injury, that might build your automobile insurance rate go up.

Vehicle Insurance Myths and Realities
e) Data from my credit report is employed once decisive my automobile insurance rate.
We order your credit report and use data from it to calculate your insurance score — this score is employed once decisive your automobile insurance rate. we tend to use credit as a result of varied studies have shown that credit could be a terribly powerful and freelance predictor of the probability of future accidents or insurance claims. In fact, Progressive information shows that customers with the worst insurance scores area unit double as possible to own associate accident or claim as those with the simplest scores.

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