Drivers are obligated to carry car insurance in nearly every state. It covers the driver in the occurrence of an fender-bender. Auto insurance is important; but, there are many falsities related to it. This piece will address the general untruths that several Americans assume about auto insurance, and will educate you on certain auto insurance aspects.
1. Full Coverage is a general phrase concerning what car insurance policies include, still, it is deceiving as there is not insurance that covers all accidents completely. Car policies contain limits for the sum they will pay for loss brought upon others. Also, most car insurance will only pay Actual Cash Value in the occurrence your own automobile is a complete loss. Actual Cash Value is comparable to the amount you could get for the car before the accident. It is not related to what it would cost to replace your auto.
2. Any person over 25 is covered to use my car. Who is covered to operate your car can differ from policy to policy. Still, a general car policy will only cover those on the policy and for infrequent drivers that have authorization to operate the auto.
3. Red automobiles are more expensive to insure. This fallacy began when people started to speculate those with red autos were more prone to get pulled over as their car was more visible to cops. The truth is speeding tickets can influence insurance rates; the color of your car does not.
4. If I let a friend borrow my car and the friend totals my vehicle, their insurance company will cover the accident. This depends on what state you live in. Certain states will make the friend operating the car to pay back the insurance company if the auto is damaged due to their error.
5. I can buy car insurance after the incident and I'll be taken care of. Insurance is intended to protect against unanticipated accidents. This logic could be equated to purchasing a lotto ticket after the numbers were pulled and assuming to win.
6. My loan will be paid in full if my vehicle is unsalvageable. As cited earlier, most insurance policies will only cover the Actual Cash Value of the car, which is equal to what the car cost new minus depreciation. If you owe more money to the lender than the Actual Cash Value, you very well may end up owing on a car that is non-functioning.
7. If I have any personal belongings in my vehicle, my auto insurance will take care of me. Car insurance is intended to insure the car, not personal belongings in the vehicle. Personal belongings in the car can be insured on a renters or homeowner policy.
8. I don't want to put my teenager on my policy because I don't want to be held responsible if they get in a wreck. Parents are answerable for the actions of their teens. The car policy does not cause the liability; it provides coverage to the parent for that liability. If the kid is not covered, the parent will still be held accountable for any damage they create.
9. The only option to get insurance to drive any car is by buying "non-owners" insurance. Car insurance was intended to provide coverage for the car owner, not the car. The vehicle isn't going to be the one in front of the judge in the occurrence a lawsuit stems from an auto crash; it will be the person who owns the car. Therefore, in most instances with some exceptions, the car policy will provide coverage for the policyholder when they are operating other people's cars.
There are many tales related to car insurance. It is best to confront these tall stories so that you are not put in a bad situation when purchasing car insurance. Disproving these fabrications will keep you better familiarized and armed against fallacies before buying car insurance. Always be sure to go over your concerns with your car insurance agent.
1. Full Coverage is a general phrase concerning what car insurance policies include, still, it is deceiving as there is not insurance that covers all accidents completely. Car policies contain limits for the sum they will pay for loss brought upon others. Also, most car insurance will only pay Actual Cash Value in the occurrence your own automobile is a complete loss. Actual Cash Value is comparable to the amount you could get for the car before the accident. It is not related to what it would cost to replace your auto.
2. Any person over 25 is covered to use my car. Who is covered to operate your car can differ from policy to policy. Still, a general car policy will only cover those on the policy and for infrequent drivers that have authorization to operate the auto.
3. Red automobiles are more expensive to insure. This fallacy began when people started to speculate those with red autos were more prone to get pulled over as their car was more visible to cops. The truth is speeding tickets can influence insurance rates; the color of your car does not.
4. If I let a friend borrow my car and the friend totals my vehicle, their insurance company will cover the accident. This depends on what state you live in. Certain states will make the friend operating the car to pay back the insurance company if the auto is damaged due to their error.
5. I can buy car insurance after the incident and I'll be taken care of. Insurance is intended to protect against unanticipated accidents. This logic could be equated to purchasing a lotto ticket after the numbers were pulled and assuming to win.
6. My loan will be paid in full if my vehicle is unsalvageable. As cited earlier, most insurance policies will only cover the Actual Cash Value of the car, which is equal to what the car cost new minus depreciation. If you owe more money to the lender than the Actual Cash Value, you very well may end up owing on a car that is non-functioning.
7. If I have any personal belongings in my vehicle, my auto insurance will take care of me. Car insurance is intended to insure the car, not personal belongings in the vehicle. Personal belongings in the car can be insured on a renters or homeowner policy.
8. I don't want to put my teenager on my policy because I don't want to be held responsible if they get in a wreck. Parents are answerable for the actions of their teens. The car policy does not cause the liability; it provides coverage to the parent for that liability. If the kid is not covered, the parent will still be held accountable for any damage they create.
9. The only option to get insurance to drive any car is by buying "non-owners" insurance. Car insurance was intended to provide coverage for the car owner, not the car. The vehicle isn't going to be the one in front of the judge in the occurrence a lawsuit stems from an auto crash; it will be the person who owns the car. Therefore, in most instances with some exceptions, the car policy will provide coverage for the policyholder when they are operating other people's cars.
There are many tales related to car insurance. It is best to confront these tall stories so that you are not put in a bad situation when purchasing car insurance. Disproving these fabrications will keep you better familiarized and armed against fallacies before buying car insurance. Always be sure to go over your concerns with your car insurance agent.
Make sure your Chicago Auto Insurance agent is there for you in the event of an accident. Contact us at Oxford Auto Insurance today!
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