Debunking Auto Insurance Myths

Posted on 9 February 2013

When it comes to the issue of auto insurance you seem to get mixed up facing a volley of myths and these misleading pieces of information. These facts are nothing but solid stumbling blocks that keep you away from availing the right auto insurance quotes. These myths might make auto insurance appear to be a complicated affair to a significant number of car owners among you. So let’s take the opportunity of debunking a few crucial myths so that you might get your hands on an insurance deal that justifies your needs. auto insurance myths

 Myth about credit scores

It has been observed that many car owners have a misleading concept that their existing credit scores are not going to affect the insurance rates or quotes. It is completely a mistaken concept. Before insuring your vehicle, a car insurer is surely going to take an introspective look into a variety of things. Your credit scores are going to be one of those important things. Insurers would like to judge your credit scores in order to figure out how good you are in managing your financial affairs.

Myth about red cars

Myth about red cars happens to be a significant myth with a majority of car owners. There are many car owners who believe that red cars are going to be highly expensive ones to insure. It is completely a myth. The truth is an insurance company is not going to bother about the color of the car that you own at the time of offering you auto insurances quotes or rates.

Myth about new cars

Most often it has been noticed that people labor under the mistaken notion that thieves have eyes for new cars. You can rest assured that it is a myth. It came out in a National Insurance Crime Bureau report thieves have eye for older vehicles. The reason is older vehicles are the easiest ones to target. Apart from that, in the midst of a tight economy there is a strong demand of used parts of older vehicles.

Myth about vandalized, stolen and damaged cars 

Many car owners have the impression that general car insurance policy is going to give them a comprehensive coverage if their car gets vandalized or stolen or damaged. The reality is bare-bones car insurance policies do not offer you comprehensive coverage. A bare-bones policy can only entitle you with liability coverage. To ensure the safety of your vehicles you have to make it sure that you have got comprehensive coverage and collision coverage both.

Myth about auto loan or lease

Most often car owners seem to labor under the impression that the insurer is going to pay off their auto loan in case their car gets into an accident. It is a misleading piece of information. In general your auto insurance does not pay off your loan or lease. You are only going to get cash value for the car. In order to cover your auto loan or lease you need to have gap insurance coverage.

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