Friday, May 13, 2011

ConsumerMan: auto insurance myths

No one may buy it, auto insurance. It is complicated. It is expensive. And understand how to determine the premiums? Maybe that's why it is so much disinformation about insurance coverage and prices.

The not-for profit insurance information Institute helped me to fight five common car insurance myths:

Myth 1: Red car cost to insure more
If you think the owner of the red cars drive more aggressively and buy more acceleration, this would make sense. But there is no data to back that up.

"Frankly, it doesn't matter whether the car is red or green or purple," said Loretta Worters, Vice President of the insurance information Institute.

Insurers are not concerned about color and law enforcement is.

"We look at behavior, not look," said Bob Calkins, a spokesman for the Washington State Patrol. "We not people profile, and we not cars profile."

Insurance companies interested in the type of vehicle, you, including the brand, model, drive sticker price, engine size and year. Is it popular with thieves? Is it more expensive to repair? It is a good safety record have?

It seems correlation between vehicle model and the probability that a ticket be traffic. A new study of quality planning (a San Francisco based analytics company, that car works with insurers) found that drivers often are more flashy cars aggressive and therefore a greater risk.

Based on this study drivers of Mercedes-Benz SL-class are convertible four times more likely, to be called for a moving violation than the average driver. Quality planning a list of the top ten "spirited vehicles" Toyota Camry Solara Coupe,'s Scion TC Coupe and the Hummer H2/H3 SUV.

Other factors that go into determining your premium: how many miles you drive each year if you drive, where you go, and if you've had previous accidents. Today is also your credit history. Insurance companies say that their data show that people with a good credit history less likely a claim.

Myth 2: Mature drivers pay more for car insurance
Life insurance increases with age, but not necessarily auto insurance. In fact, it is often the opposite.

Many drivers, the 55 or older receive reduced - up to 10 percent for three years - their prices if they use one accident prevention course successfully completed.

"Insurance companies consider these tires driving courses and find it a good thing to be," Loretta Worters said. "It helps to update an older driver and they stay sharp and it is safe on the road."

Contact your insurance agent find defensive driving courses, which by your insurer. If you are retired or no longer work full time, see if you qualify for a discount based on less drive qualify.

Myth 3: The insurance covers damage to your car 
It works in this way. Liability insurance (required in a State) covers you if you damage someone hurting or their property. Comprehensive and collision coverage, you protect your vehicle. Therefore, this is always optional coverage. Note: It may be required by the lender when you lease or loan have car.

If you want to fully protect your vehicle for all types of damage, you have to collision and comprehensive coverage to purchase. But many people with older cars sometimes drop these coverages to save money.

"The vehicle is in the value of less than a thousand dollars or less than 10 times the premium payable, purchase this optional coverage may be not cost-effective," said ducks.

Myth 4: Soldiers pay more for insurance
In fact, it is the opposite. Members of the military (no matter what branch) qualify for a discount on their auto insurance. In most cases, you must document your rank and how long you are served.

"Many insurers offer also discounts for former members of the military and their families," said ducks. "It is so to examine a good thing for military families."

Myth 5: Your policy covers you if you drive the car for business
Personal auto insurance protects you if you are self service-commercial facilities- and use your vehicle for business purposes.

Many young people, the pizza delivery jobs take white, for example, not so if you no employee of the restaurant pizza, you not by the company insurance policy are covered. If you have an accident during a delivery and you are on your own. Your personal insurance is most likely deny claims.


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