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Top Car Insurance Myths: How many have YOU fallen for?
Posted By Ron On August 13, 2012 @ 8:17 AM In Insurance | Comments Disabled
A few weeks back, I was at my parent’s home, helping them declutter their office when I ran across an old copy of Wealth Without Risk (1988) by Charles Givens. Givens was the financial guru of his day and one of the ways he advocated cutting expenses was by thoroughly examining your car insurance — the amount and type of coverage anyone carried. I’m sure as Mr Givens wrote his book back in the late 80′s, he never realized how easy it would eventually become 25 years later to get multiple car insurance  quotes simply by typing in some information into a computer. I’m also pretty certain he never thought that car insurance  would become so inexpensive or that the proliferation of knowledge about car insurance  would also perpetuate some incredible myths.
How many of these myths have you fallen for?
Wrong! All insurance companies use credit scoring to determine if you will qualify for auto insurance and what your premium rate will be. Rates can differ by up to 50% between someone with excellent credit and someone with poor credit. Know your credit score  before you apply and if your score isn’t that good, take steps to fix your credit using a company like GoLookOnline.com . Companies consider a good credit sore to be a way to see if you are responsible with the timeliness of paying your bills … including your auto insurance bills.
Wrong! Car insurance  companies are interested in the year, make, model, body type, and engine size of your vehicle. The color may be highly important to you, but your car insurance  company doesn’t care if your car is red, blue, black, silver, gold, green, or sunshine yellow.
Wrong! Your homeowner’s coverage has nothing to do with your auto insurance. In this scenario the only way your car will be covered is if you maintain comprehensive insurance coverage  on your car. Even then, it only pays AFTER you pay your deductible.
Wrong! Generally speaking, your car insurance will only pay for items that are attached to the vehicle. It doesn’t cover your personal belongings you leave inside the car. You’ll probably have to file a claim on your homeowners insurance  or renters insurance  policy to be compensated for personal belongings.
Wrong! If your car is totaled, your car insurance  will pay the actual cash value of your car. The company adjuster will try to find a similar car to yours via Craigslist or the classifieds and THAT will be what you are compensated AFTER your deductible is paid. If your car is worth (in the classifieds) only $5,000 yet you owe $6,000 on it, the insurance company will subtract your deductible from the $5,000 and pay your lender the rest. You have to make up the balance. The only way to avoid this situation is to maintain GAP insurance to pay for this GAP in coverage.
There are a myriad of companies that can provide you with the car insurance you need. Most of them simply need you to fill out a few fields in a simple form to initiate the quote process. And remember, it’s just a quote! You can’t start saving money until you take that first step.
The Hartford  (through AARP) has great rates for ANYONE but especially the over 50 crowd. If you’re not that old, don’t worry about it, they can insure you with a great rate even if you’re less than 50 years old and the Hartford is a well respected name in the insurance industry.
InsureMe.com  has the best rates from companies such as State Farm, Liberty Mutual, Progressive, AllState and Nationwide. You just can’t beat these guys.Insureme  works a lot like LendingTree , shopping your information to a select group of insurers who then give you a quote.
Geico , who doesn’t love the little green lizard … I mean, Gecko?
USInsuranceOnline.com  has been coming on strong for the past few years as a significant leader in the online car insurance world.
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URL to article: http://www.thewisdomjournal.com/Blog/top-car-insurance-myths-how-many-have-you-fallen-for/
URLs in this post:
 Tweet: https://twitter.com/share
 car insurance: http://www.thewisdomjournal.com/Blog/insurance/#car-insurance
 credit score: http://www.thewisdomjournal.com/Blog/go/myfico.php
 GoLookOnline.com: http://www.gofreecredit.com/r/4d8948948e/?subid=
 Image: http://www.shareasale.com/r.cfm?b=369759&u=290897&m=29822&urllink=&afftrack=
 comprehensive insurance coverage: http://www.thewisdomjournal.com/Blog/auto-insurance-whats-the-difference-between-collision-liability-and-comprehensive/
 homeowners insurance: http://www.thewisdomjournal.com/Blog/insurance/#homeowners-insurance
 renters insurance: http://www.thewisdomjournal.com/Blog/go/insureme.php/
 The Hartford: http://click.linksynergy.com/fs-bin/click?id=ZjxT45VX4g4&offerid=193166.10000039&subid=0&type=4
 InsureMe.com: http://www.thewisdomjournal.com/Blog/go/car_insurance.php
 Insureme: http://www.thewisdomjournal.com/Blog/go/insureme.php
 LendingTree: http://www.thewisdomjournal.com/Blog/go/lending-tree.php
 Geico: http://www.thewisdomjournal.com/Blog/go/geico.php
 USInsuranceOnline.com: http://track.linkoffers.net/a.aspx?foid=1765929&fot=9999&foc=1
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