Auto Insurance Myths
We have all heard the myths about car insurance haven’t we? Some of these are true and some of these you can throw out the window. While all of the myths may have some relevance, you needn’t concern yourself with all of them. Lets take a minute to go over some of these Tire Dallas myths.
Myth 5: “My auto price is set by the government.”
Not true. The government can’t set auto insurance rates, although state governments CAN set the maximum rate insurers can charge. Extra important elements are geography, credit rating, marital status and, in fact, your accident record.
Myth 4: “Crimson automobiles have larger rates, black automobiles have lower ones.”
Totally bogus. The colour of your car has no effect on insurance coverage rates. Attributes that do have an effect on insurance coverage charges are your car’s yr, make, body sort, model and engine size. Within the case of bikes, having an engine measurement of 1000cc sometimes ends in increased insurance coverage premiums.
Myth 3: “If my pal has an accident in my car, his insurance firm will cowl the damages.”
Wrong. The rule is fairly easy: Your car, your drawback! Your friend’s policy could act as excess insurance coverage if the damages are over your policy’s limits, but you are primarily responsible. The accident may even go in your insurance coverage document and your insurance coverage premium may go up.
Myth 2: “No-fault insurance = not my fault!”
Nope. All “no-fault insurance” means is that your insurance firm pays for your damage-related payments regardless of who’s at fault.
Myth 1: “I simply paid my insurance coverage premium, so my new car I just purchased is covered.”
True, but solely to a point. You have to notify your agent of the new car purchase within a certain time period, otherwise you’re not covered. This grace interval varies by company, but is typically around 7 days.
There are several myths floating around out there but these are the nuts of them. If you would like me to add anything to them, please leave a comment on the front page ofDallas Auto Insurance and I will address them.
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