The Truth about Car Insurance
Date: Wednesday, December 19, 2012
Categories: Car Insurance
Title: The Truth about Car Insurance | Gregg S. Marcus Blog
Purchasing auto insurance is a complicated and expensive process, which no one enjoys. Insurance companies’ premiums seem to always be overpriced as well as incomprehensible. This is why so frequently there is misinformation regarding insurance coverage and payments. The following are the most common myths relating to auto insurance which have all been proven to be false. In this article, Long Island Insurance Executive Gregg S. Marcus seeks to inform about the different auto insurance liabilities that are out in the market today.
1. My auto insurance company can cancel my policy at any time.
As long as you make your monthly scheduled payments, state regulations prohibit insurance companies from dropping you in the middle of your policy term. As long as you pay your premiums and have a valid driver’s license, insurance companies cannot cancel your policy. There are some reasons in which a company could cancel insurance policies, however, they do not have the right to do so at anytime.
2. I got a ticket so my insurance is going to go up.
A parking or speeding ticket does not necessarily mean your insurance rates will instantly rise. If the ticket is for just a minor parking violation and you have an otherwise clean record, there is no need to worry. It depends specifically upon the situation and whether or not you have any recent traffic infringements. If you receive a ticket and are unsure, you can always ask your insurance company directly.
3. Older drives pay more for car insurance
Some policies, such as life insurance my go up with age, though auto insurance is one of the few that actually go down as you get older. If you are 55 years or older and complete a driver’s safety accident prevention course, you can reduce your insurance up to 10% for as long as three years. Check with your insurance company for defensive driving courses that they approve, and also if you are retired be sure to ask about a discount based on driving less often.
4. The color of my car affects my insurance rate.
Car Insurance companies base their rate mainly off of safety features of a vehicle as well as how much it would cost to repair said vehicle. It is a common misconception that the color of your car affects your rate, for example many people believe red cars are more accident prone and therefore cost more to insure. It is true that some specific makes and models are found to be attributed to more accidents, and those cars are adjusted accordingly, however color is not a contributing factor to your premium.
5. My friend borrowed my car; he’s responsible for the damages.
If you give an individual the permission to drive your car and it just so happens that they unfortunately get into an automobile accident, it is your policy, not theirs, that must cover the damages. Though, if it ends up that your auto insurance policy becomes maxed out, it is possible for your friend’s policy to be tapped into in order to cover the remaining damages. contact Gregg S. Marcus today!