Car Insurance Myths Continue To Thrive
Car insurance is not something that most people think about often, and because of this, many insurance myths persist. If consumers better understood car insurance, they might be better protected and save money, as well. For a large number of consumers, car insurance is considered only when buying a new vehicle.
Following are a few items that consumers regularly misunderstand about car insurance:
Myth: The color of a car impacts the price of the insurance premium.
Fact: This myth has been around for years; the classic misconception is that red cars are more expensive to protect than those of other colors because the color is "sporty." This is just a myth; the color of a car does not affect the price you have to pay to cover it.
Myth: Low-cost vehicles cost more to cover than pricier models.
Fact: The insurance premiums are determined by a number of things, like how much the car will cost to fix and the chances of the car being stolen. The price of the car is largely unrelated to the price of insuring it. The main factor is not the cost; it's this - what is the chance that a particular vehicle will cost the company money due to a payout?
Myth: The government determines rates, so there is no reason to shop around for the best price.
Fact: The Federal government has no say whatsoever in how pricing is established. State governments do have some say in how pricing works in a given state, but the figures may be only guidelines. Consumers can save money by shopping around for the best price, and savvy shoppers will do just that.
Myth: You don't have a need for any more insurance than the law requires.
Fact: You might consider carrying more protection than the minimum required in most states so that you might avoid a potential lawsuit. The minimum amount of liability coverage may not protect you if you cause a wreck with a luxury car or if you cause substantial bodily harm to someone in a wreck.
Myth: Lower deductibles are ideal, so you do not have to "shell out" should an accident occur.
Fact: Insurance isn't intended to pay for every nickel and dime expense; it's designed to cover big expenses that would create a financial burden. It is more sensible to go with the highest deductible you can afford, as you will save a lot of money on your premiums. Most people rarely have wrecks, so they rarely have reason to file a claim. Many, if not most consumers are paying a lot of money in insurance premiums for the benefit of having low deductibles. Do not pay extra so that you might have a low deductible; it is not worth it.
It is well worth your time to know the difference between car insurance rumors and facts. Staying informed about car insurance can not only help keep you safe, but it can also save some money. By: essmeier Article Source: http://www.ArticleDashboard.com
©Copyright 2007 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including LemonLawHelp.net, a site devoted to information regarding lemon laws for automobiles and Car-Insurance-Help.net, a site about car insurance.
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