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Don’t always believe everything you hear. That statement also goes with what you read on the internet too. There are many people out there that are misleading about car insurance and how it works. These are the most common myths about car insurance. When someone tries to mislead you with one of them, please set them straight.
• The color of your vehicle affects the rate:
A red or yellow car costs no more than a gray or blue car. This is one of the biggest myths told. Don’t be concerned about the color of vehicle you are buying.
• When you move, your rates will stay the same: Depending on where you move to, your rates could increase or decrease. There are localities that are more accident prone than others and insurance companies set their rates according to the statistics.
• The rates will be the same at all insurance companies:
Shop around! Not all companies will hold you to the same rates.
• If a person is driving your car and has an accident, their insurance covers it:
No way; your insurance is the liable party. It is a good idea to be very choosy in whom you allow to drive your car.
• Your personal auto insurance covers if you are driving for business:
This is another big myth. If you are driving your automobile to deliver food or do business dealings with, your car is not covered by your personal auto insurance. Speak with your agent and they can probably get you into a policy that will cover you and your car during business driving.
• Insurance companies can cancel a policy anytime they want to:
There are State laws that keep insurance companies from canceling a person in the middle of a policy. They have to be able to show very good grounds for doing so.
• Items in the car are covered under my insurance policy:
Only the people and the car itself is covered with full coverage insurance. Your personal items such as a laptop or stereo system are usually not covered unless you have a special policy that does. Always ask an insurance agent before just believing what many people say about insurance policies. Just because someone or a website says a statement doesn’t always mean it is correct. Check the facts and know how auto insurance works for you.
Arthur Johnson , I am currently a freelance writer on behalf of numerous leading providers of auto insurance in the automobile industry. My passion is to inform others on the most beneficial ways to choose the right car Insurance.