Tweet

6 Most Common Car Insurance Misconceptions

Guest post by: John Clark

Article Overview: Most people take advice from their families, friends, and coworkers on everything from relationships to finances. Unfortunately, with every good bit of advice, there is usually a few bad tips thrown into the mix. This is why it is important to get the facts, instead of becoming a believer of one or more of these six common car insurance misconceptions: 1. Many people believe that if they allow a friend or family member drive their vehicle, that he or she will be held responsible for any damages that may occur if they get into an accident. However, this is not the case. Even if another individual is driving a car, the owner of the vehicle is responsible for any damages that occur. This means that the owner of the car will have to go through their insurance company to have the car fixed, which may increase their monthly premiums. 2. W

6 Most Common Car Insurance Misconceptions

Most people take advice from their families, friends, and coworkers on everything from relationships to finances. Unfortunately, with every good bit of advice, there is usually a few bad tips thrown into the mix. This is why it is important to get the facts, instead of becoming a believer of one or more of these six common car insurance misconceptions: 1. Many people believe that if they allow a friend or family member drive their vehicle, that he or she will be held responsible for any damages that may occur if they get into an accident. However, this is not the case. Even if another individual is driving a car, the owner of the vehicle is responsible for any damages that occur. This means that the owner of the car will have to go through their insurance company to have the car fixed, which may increase their monthly premiums.

2. When purchasing a new vehicle, many drivers assume that their old insurance policy will cover their new vehicle. Unfortunately, this is usually not true. Any time that a driver acquires a new vehicle, he or she will need to inform their insurance provider.

3. When getting into an accident, many drivers automatically believe that they are not at fault, especially if they were hit. However, auto insurance providers carefully review each claim to determine who was "at fault" after an accident. Therefore, no driver should simply assume that they will not be held responsible for an accident.

4. Another common misconception is that an auto insurance company will reimburse a customer for items stolen from their vehicle. While this can be included in an insurance plan, this is usually an option that a customer must specifically choose, not one that is automatically included.

5. Many people are also confused about what collision coverage actually entails. Collision coverage will only cover damages that occur when driving. Comprehensive coverage will cover theft, hail damage, vandalism, fire, or other non-driving related damage.

6. Many drivers also believe that their credit score does not affect their auto insurance. However, a driver's credit score does affect the cost of their monthly premiums. This is because studies have shown a that drivers with low credit scores generally file more claims, than those with higher credit scores.

Related Articles
  The Right Age to Buy Primerica Life Insurance
  Car Insurance - Gap Insurance
  Medical Insurance Information - Get Cheaper Insurance
  How are Car Insurance Premiums Increased?
  How to Sell Insurance – Really
  Business Insurance Coverage
  5 Common Health Insurance Misconceptions
  Commercial Business Insurance for Small BusinessOwners
  Auto Insurance: Considerations For Getting A Policy
  COBRA Health Care insurance vs Family or Individual Medical Care Insurance
  COBRA Healthcare insurance vs Individual Health insurance
  Deciding Whether To Buy Personal Injury Protection for Car Insurance
  4 Types of Commercial Small Business Insurance you can choose from
  Getting Health Insurance Online
  Moving/Relocating: Updating Your Insurance After A Move
  How to Get the Best Rates on SR22 Car Insurance
  eHealthInsurance.com Health Insurance | Health Insurance Company Guide
  Car Insurance - Fire and Theft Coverage
  Guide to Selling Your Car and Stopping Insurance
  Farmers Insurance Company - Car Insurance Coverage

Article Tags: auto insurance, car insurance, insurance, insurance company, relationships
Referred by: http://www.franchisefix.com/



Related Forum Posts
Re: Insurance for Home Based Business? - hi there I'm a newbie here.I can get good information regarding the Insurance for Home based business and more. It's really safe to have Insurance for a home based business. Thanks a lot for discussing some important issues here and i feel really happy to be a part of this.
zipcar saves Gas cost - The gas prices haven't affected me in anyway. I use the Transit system and ZipCar. I love Zipcar 'cos it has Gas and Insurance included in the prices and they haven't raised that for a couple of years now.
Should FDIC Worry about FHLB? - What do you think the impact would be on the Bank Insurance Fund with Federal Home Loan Advances for business? Especially since you can obtain a grant when used in combination with FHLB advance. The grant can be used for anything you want for your business (down payment to a seller or franchise fees, working capital...etc.) This puts the borrower in a pretty good position. Should FDIC worry about FHLB?
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
Re: Should FDIC Worry about FHLB? - [quote="BizLoanz4u":3cde91n6]What do you think the impact would be on the Bank Insurance Fund with Federal Home Loan Advances for business? Especially since you can obtain a grant when used in combination with FHLB advance. The grant can be used for anything you want for your business (down payment to a seller or franchise fees, working capital...etc.) This puts the borrower in a pretty good position. Should FDIC worry about FHLB?[/quote:3cde91n6] Hi Michele, Could you first tell us a little more detail about both organizations?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Become A Member of the Paparazzi

Attracting Passionate Employees

ROSI Return on SUNK Investment

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.