The majority of motorists are aware that the rates for high risk auto insurance companies that they pay are determined by a variety of factors, including their driving history, the type of vehicle they drive (whether it be a car, van, truck, or RV), the length of their commute, and various demographic information such as their age and gender.
On the other hand, there are a number of misunderstandings about auto insurance that, in only certain instances, might wind up costing the policyholders far more than the premium.
Let us now show the light of truth and demolish all 8 of the myths that have been perpetuated about this topic.
Myth Number One Regarding Automobile Insurance: Red Vehicles Are the Most Expensive to Insure
This urban legend has been around for a very long time, yet there is absolutely no truth to it. The premium that you pay takes into account not just the purchase price of your vehicle but also its safety record, the expense of repairing it, and the probability that it will be stolen. There is no significance to the hue. To put it another way, the insurance premium for a silver Mercedes 260E will be more expensive than the premium for a red Honda Civic.
Myth No. 2 Regarding Auto Insurance: Older Drivers Are Required to Pay More to Insure Their Vehicles
The fact of the matter is that senior drivers, often defined as those aged 55 and over, are eligible for discounts that younger drivers might not be able to get. Courses on defensive driving are made available by both the AAA and the AARP to senior drivers. These are available to be completed online and, following successful completion, might result in a decrease of your auto insurance price by as much as 10%
Myth No. 3 Concerning Automobile Insurance: Your Credit Score Does Not Matter When It Comes to Automobile Insurance
In point of fact, this is of great significance. Your consumer credit report contains information that may be used in whole or in part to generate a credit-based insurance score, which is used by virtually all insurance companies to assess your eligibility for coverage and the cost of your premiums. For the vast majority of individuals, having a strong credit score will result in cheaper insurance premiums, and vice versa.
Myth number four about auto insurance: You will be compensated if your vehicle is broken into, stolen, or vandalised.
Certainly not in every case. Theft, vandalism, and a variety of other damages to your automobile that are not the result of an accident are covered by comprehensive vehicle insurance, which is an optional kind of coverage. As a cost-cutting measure, many motorists opt not to carry this while they are driving an older vehicle. Keep in mind that in order to provide complete protection for a vehicle, it is necessary to have both collision and comprehensive coverage in effect.
Myth No. 5 Regarding Automobile Insurance: The Legally Required Minimum Amount of Automobile Liability Insurance Is Adequate
The minimal liability limitations imposed by states are woefully inadequate to meet the costs associated with a major accident. The proverb “penny smart and pound stupid” is applicable in this situation. If you have insufficient coverage, cutting costs by a few dollars each year might wind up costing you thousands more. It is recommended that the actual liability coverage limits be four to six times higher than the minimum required by the state.
Myth number six about auto insurance states that if someone else drives your car, they will be covered by your policy in the event of an accident.
In the majority of states, automobile insurance follows the vehicle wherever it goes. Keep in mind that if you lend someone your automobile, you are implicitly agreeing to be responsible for the person who is driving it. Should the driver get into an accident, there is a possibility that your premiums would increase.
Myth number seven about car insurance is that service members are required to pay higher premiums.
This is not the situation at all. In point of fact, a number of insurance firms provide discounts and other benefits to active duty service members, veterans, and their families. This makes sense given that, according to the statistics, those who serve in the military forces are, on average, responsible, law-abiding people who are safe. These are all characteristics that make them a lesser risk.
Give us a call at (734) 656-8387), if you want to safeguard not only your staff but also your car, your equipment, your company, and any other persons who may be there.
Myth number eight about auto insurance: If you have personal insurance, you are covered for both personal and commercial use of your vehicle.
Take extra precautions when moving forward. If you own your own business and use your car for personal reasons, you run the risk of having your value auto insurance claim rejected. The guidelines that differentiate what qualifies as personal or business usage of a car for insurance purposes are notoriously difficult to follow. Check to be that you are protected by the insurance coverage that is most appropriate for your circumstances.
Additional insurance options to consider for your business car are the following:
Collision: This protects your car against any damage that may be suffered as a result of a collision or accident.
Comprehensive insurance protects you in the event that your car is destroyed in a way that is not the result of an accident, such as if it is stolen, set on fire, or vandalised.
Coverages for personal injury protection (PIP) and medical payments Personal injury protection (PIP) and medical payments coverages assist take care of expenditures, such as loss of earnings, that are incurred when you and/or your passengers are hurt in an accident. These expenses include medical bills.
A dead battery, a flat tyre, the need to have your vehicle towed, running out of petrol, or locking yourself out of the vehicle are all situations in which you might benefit from having emergency roadside assistance insurance.
In the event that your personal items are stolen, your personal effects will be covered by your personal effects insurance policy.
Even if you only own one of the following cars and use it for business reasons, you need get commercial vehicle insurance since your business is at risk if you don't have it. If you own or lease a fleet of vehicles, you probably already know that you need commercial auto insurance.
Trucks – dump trucks, refrigerator trucks, etc.
vehicles specifically designed for use in construction
Utility vans
Limousines
Taxicabs
Flatbeds
It is possible that you will be astonished to hear that you are required to obtain commercial insurance for a “normal” automobile, pick-up truck, or SUV if any of the following conditions are met:
Because of the nature of your employment or business, you make use of one or more automobiles (other than commuting to work)
A company, partnership, or other type of corporation either owns or leases the vehicle in question.
This motor vehicle is furnished with…
The machinery used for snowplowing.
equipment for either cooking or catering.
Bathrooms.
Suspensions that have been altered.
Hydraulic lifts.
Racing equipment.
You or your staff utilise the car on a regular basis for both work and personal purposes, and you do so in the sam
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