4insure

There is so much information available today involving auto insurance, it is easy to get confused. Many times all it takes is one misunderstanding to spark a rumor, that over time people begin to believe as fact. All the legal documents, contracts, and terms certainly doesn’t make the whole process of choosing an auto insurance policy any easier. The goal of this article is to dispel a few of the many myths and misconceptions we here today.

If you aren’t at fault, your premium won’t increase.
This is the one misconception I hear time and time again. People figure that since it wasn’t their fault, they shouldn’t have to pay for it. While this is logical, and would be true in a perfect world, the auto insurance industry disagrees with you. If you are involved in an accident, whether you are at fault or not, the insurance companies see this as a testament to your likeliness of being involved in an accident.

I have an auto insurance policy, so I’m completely covered.
Many people assume that holding any kind of auto insurance at all will protect them in all scenarios. In fact there are more than a dozen different types of auto coverage. Just because you’re covered in cases that you collided with another vehicle, does not entitle you to bodily injury coverage. This is just one example. It is vital to your financial security that you fully understand what coverage your particular policy includes.

Comprehensive coverage is commonly mistaken to mean you are insured in all scenarios. In fact all it means is that you are covered for things other than collisions. However, this does not mean you will be covered in every aspect.

If you aren’t driving at the time of an accident, you don’t have to pay up.
Just because you weren’t driving the car when you let your friend borrow it for the weekend, doesn’t mean they are responsible for filing a claim with their insurer. When you take out an auto insurance policy, it covers YOUR car, regardless of who is driving it.

The color of your car effects your rates.
This one is almost believable, simply because it fits so well with higher premiums for faster cars, ages, and genders. As believable as it may seem, basing a premium on the color of a car does not justify charging someone more.