December 24, 2011

Common Myths About Online Auto Insurance Coverage

Thousands of people shop for auto insurance coverage each day, with so many unaware of what they are buying. Added to this, some people have a lot of misconceptions that can negatively impact the decisions they make. It is possible to get cheap car insurance without skimming on quality, but first, buyers must dismiss these five myths:

Buying Any Insurance Covers All Loss or Damages

This is one of the primary myths that people must beware of. Unless someone has a comprehensive and collision insurance, that person is not fully protected. This means that most drivers with a basic plan only have liability coverage; hence they are responsible for loss or damages due to theft, natural disasters, fire and accidents.

Insurers Will Cover the Balance of a Lease or Loan if a Car Gets Totaled

Insurers will only pay the cash value of the vehicle. The deductible will be removed, and the car's depreciation will also be taken into consideration when deciding how much the insured gets for the vehicle. Therefore, the money received could be less than the loan or lease balance.

Owners of Red Cars Pay More for Insurance

The notion that drivers of red cars are more daring and reckless, hence pay more for auto insurance coverage is incorrect. In fact, the color of a vehicle is seldom ever requested when insurers are giving quotes. There are a number of factors that will affect how much one pays, but this is not one.

Sports Car Drivers Pay Higher Premiums

This myth has as much grounds as the previous one, and comes from the belief that sports car owners receive more speeding tickets than owners of other cars. There are several models of cars that register higher speeding tickets than sports cars in general. However, one's history of accidents, frequent claims and speeding tickets could result in higher premiums, since one has proven to be a liability.

"No-Fault" Insurance Means No One is at Fault

The purpose of "No-Fault" insurance in most cases only requires the insurer to cover medical care while the incident is being investigated. This coverage does not remove the blame or consequences for causing the damage, but merely helps with medical protection regardless of who is responsible. However, once the driver at fault is identified, that driver may have a number of expenses to cover.

The sooner insurance shoppers understand the factors that affect their premium, and what each plan covers, the sooner they will be able to find cheap car insurance that offers adequate protection. The best thing to do is research basic insurance facts and approach each insurer with an open mind. This can make choosing auto insurance coverage easier.