Top 10 Misunderstood Things About Car Insurance

After spending many years in the insurance industry we have come up with a top 10 list of most misunderstood things about car insurance.  These car insurance myths are some of the most common questions that most people have about direct car insurance either buying or reviewing their  auto insurance coverage.  Its better to find out now before you have a claim and  it’s too late.

  • I just got my 1st speeding ticket my insurance rates are going to go way up.

Reality:  If this is your first ticket your rates probably won’t even change.  Most direct car insurance providers will give you a pass if you don’t have any other tickets or claims in the past 3 to 5 years depending on the company.

  • That new Plasma TV I bought last year won’t affect my Car Insurance

Reality:  If you didn’t pay the credit card  you charged it on then it just might.  Almost all insurance companies now use some form of credit scoring when determining not only if you will qualify for insurance, but also what you will pay.  There can easily be 50% difference in rates for a person 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 it

Reality:  Your homeowner’s coverage has nothing to do with covering your car.  The only way your car will be covered is if you have Comprehensive (Comp) coverage for your car.  And then only after you pay you deductible.

  • I just cracked up my friends car and I tell him don’t worry my insurance will cover it

Reality: It will but only after your friends policy pays first.  So let’s say your friend has a $500 collision deductible and you have a $250 deductible.  You would have to give your friend the $500 for his deductible as his insurance company is Primary.  Meaning your insurance will only pay after his policy limits are exhausted.  So just remember in this scenario your deductible does not matter its going to be based on your friends.

  •  If you’re riding your bicycle and get hit by a car your car insurance won’t get involved

Reality:  If you get hurt or killed while riding your bike or even walking down the street you maybe surprised to learn 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 pay for your claim. 

  •  Someone just broke into my car and stole all of my personal belongings out of it i.e. Cd’s, Cell phone, Christmas Presents, my car insurance will pay for it.

Reality:  Your car insurance does not cover your personal belongings left inside the car.  You are going to have to file a claim with your Homeowners or Renters insurance policy to be compensated for these items.  The general rule of thumb is your car insurance will only pay for items that are attached to the vehicle

  •  I am going to be charged more for my  Car 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 like red buy a red car, if you like black buy a black car.  Don’t ever let this silly nonsense stop you from buying a car.   

  •  I didn’t have a car for the last 2 years, this won’t affect my rates.

Reality:  Not having continuous car insurance is frowned upon by most direct car insurance companies now a day’s.  Some companies won’t penalize you for not having prior insurance.  If you don’t have prior insurance make sure you have a good excuse like you took the bus, or you were in the military, or some other legitimate reason.  Oh and by the way I couldn’t afford my insurance is not on that list

  • Telling a little white lie on my insurance application won’t affect my coverage if I ever have a claim

Reality:  This is one of the worst things a person can do.  If you lie on your insurance application there is a good chance you won’t have any coverage when you need it the most.  You think they won’t find out?  Remember these 2 things when insurance company is on the hook for a ton of money.  #1 They are going to start asking questions and the first thing they look at is your application.  Wouldn’t you if you were them?  And reason #2, the insurance companies have more money than god and they have people working full time to find this stuff out. 

  •  Buying a cheaper more reasonable car will be less to insure the a more expensive car. 

Reality: There are a lot of different factors insurance companies use to determine rates, however there are many times were the rate for the more expensive car is less than the cheaper car.  One of the biggest factors for the Comp & Collision coverage’s are how much do replacement parts cost.  Sometimes on those cheaper cars or the more exotic cars the replacement parts can cost a lot to replace.

So just remember the next time your online looking for a cheaper insurance policy, to consider some of your options.  There are hundred’s of direct auto insurance companies out there looking to get in your pocket, just make sure when the time comes you can get into theirs.

Bryan Waldo

Auto Insurance: Top 5 Tips to Help You Save

As the owner of a vehicle, or two, you need to get cheap auto insurance or else you will end up paying quite a bit of money to your insurer every year. At the same time, you can’t very well be without any sort of insurance. Not only is it illegal to drive without insurance but you also expose yourself to serious financial risk by doing so. Finding out how to get affordable insurance will save you a great deal of money. The following tips will definitely be of good use to you:

1. Get only the coverage you need. If your vehicle is over insured then you will just end up paying money for nothing. Have a discussion with a reliable insurance agent in order to determine exactly how much you need. The car you drive, how often you drive and also the number of people who will drive the car have a bearing on what kind of coverage you need.

2. Combine all your insurance needs and deal with one insurer only. Try to get a multiple car discount. Insuring your cars separately will cost you extra money. Also, your homeowners insurance as well as medical and life cover should ideally come from one company.

3. See whether you have been given all possible discounts. Insurers generally give discounts on a variety of counts. They range from the use of anti-theft devices in the car to a good driving history without any accidents or claims. It is also possible to get a discount if one has had defensive driving classes. These discounts and the percentage offered on them vary according to the insurer.

4. Opt for an annual policy instead of a 6-month policy. You do have to pay more money upfront if you buy insurance for the entire year but you’ll save money overall.

5. Do not settle for the first quote you are offered. This might seem to be obvious but most people don’t bother asking for a better discount or even shopping around for the best possible quotes. Thankfully, it is quite easy to get multiple quotes these days and you will not have to invest a lot of time in it.

You might have to put a bit of effort into finding cheap auto insurance but you will be really glad that you did so. You’ll save quite a bit of money on insurance which is a recurring expense.

Finding the Top Classic Car Auto Insurance Company

If you have a collector car then it is bets to purchase insurance from a classic car insurance company. Classic cars are a specific type of cars that tend to be at least 15 years old and have a value attached to them. Classic automobiles are special cars that as long as they are kept in good condition will increase in value as they age. Typically they are already very expensive when originally purchased as new or they may be a limited number of those models manufactured.

Each state has their own regulations that must be met to be considered a classic car. The vast majority of these guidelines and regulations are similar but there are a few unique ones found among different states. Additionally collectible car clubs may have even more regulations to meet as clubs may be looking for specific types of classic cars.

Insurance is important because collectible cars can be treated as an investment that will gain value over time. The most valuable classic cars are the ones that have the original paint job, no rust and are in excellent condition with very low mileage. Typically insurance rates are determined based on the mileage on the car and its condition.

Insurance quotes can be obtained by filling out information online via a classic car insurance company site. Almost all car insurance companies will offer classic car auto insurance as well as some specialized insurers. You have many different options that can be included in your classic car insurance package that includes emergency towing, reimbursement of personal effects, car show expenses, lockout, lost keys, and roadside assistance to name but a few.

Theft is a large issue with collector vehicles and you should have a strong theft policy as having your collector car stolen can be a huge loss in assets. For well insured cars many time the insurance company will offer a reward for the recovery of the car. Many times it is less expensive for the insurance company to pay a reward for the recovery of the car rather then pay out the actual value of the stolen classic car.

Insurance rates for collectible cars can be separated out based on mileage. Many antique cars will have quite low mileage as the collectible car is usually not a persons main form of transportation but taken out for special occasions. There is a greater danger of damaging the collectible car if it is driven frequently and this will depreciate the value of the car.

It is also possible to get specific classic car auto insurance just to cover the cost of repairs and other associated costs. This is many times based on the current value of the car and the availability of parts and a skilled mechanic that can fix your collector car. As with insuring other cars your driving history will also be factored into the insurance.

After you have received a basic quote from your classic car insurance company or companies you will need to get a more detailed one that is customized for your classic car. You should be able to customize the insurance package any way you like and if you need help you should be able to receive it from the insurance company or an outside company such as the state auto insurance.