Top 8 Auto Insurance Myths Dispelled
When purchasing car insurance, you probably already have a good idea about the factors that affect your car insurance premium rates and coverage. But how do you differentiate between truth and fiction? The Insurance Information Institute (I.I.I.). dispels common mythsabout auto insurance and shows you how you can save money:
Myth 2. It costs more to insure your car when you get older.
Many drivers over 55 years of age can qualify for a reduction in auto insurance rates, typically for three years, if they have successfully completed an accident prevention course. Insurance companies will usually provide up to a 10 percent discount on car insurance, but check with your provider before you sign on. Mature driving courses are available through local and state agencies as well as through the AAA and AARP.
Myth 3. Your credit has no effect on your insurance rate. Your credit-based insurance score does matter. An insurance score is a measure of how well you manage your financial affairs, not your financial assets.
Myth 4. Your insurance will cover you if your car is stolen, vandalized or damaged by falling limbs, hail, flood or fire. Comprehensive and collision coverage are optional coverages. Lenders frequently require drivers to buy comprehensive and collision coverage as a condition of a car loan agreement. Those driving older cars sometimes drop these coverages as a way of saving money.
Myth 6. If another person is driving your car, his or her auto insurance will cover them if they get in an accident.
In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the auto insurance company for the vehicle must pay for damages caused by an accident.
Myth 7. Soldiers pay more for insurance than civilians.
No matter what branch of the military you are in, you qualify for a discount on auto insurance. In some situations you might be able to have your commanding officer make a phone call on your behalf, but for most auto insurance companies, you will need to supply documentation that lists your name, rank and the time that you will be enlisted in the service.
Myth 8. Personal auto insurance covers both personal and business use of your car.
If you’re self-employed and use your vehicle for business purposes, personal auto insurance may not protect you. While auto insurance geared for businesses can be more costly than a personal policy, one of the best ways to keep your auto rates down is by having a good driving record.
If you have questions about your auto insurance call Bucci Insurance Group today.

March 1, 2011
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Posted by RLawton













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