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Guest post by: John Clark Become an Author

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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.

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Referred by: http://www.franchisefix.com/

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