Auto Insurance : 5 Common Myths About Auto Insurance Company

Comparing the car insurance companies can be a bit confusing, especially if you already have a false sense of what is expected. You may have some preconceived ideas about what the car insurance and how it works based on snippets of information from friends, coworkers, relatives, television, etc. Let's discuss five common myths about auto insurance to ease your mind.

Myth # 1: Car insurance is determined in the same way by each car insurance company.

The idea was to leave the impression that all automobile insurance companies think and work together, which is certainly not true. Each insurance agent to determine the price based on a number of risk factors that affect their company the most. The risk factors vary by what type of company usually accommodate drivers. Some car insurance companies meet the high-risk drivers, such as drivers with poor driving record or a history of DUI. Another meet, middle-aged, married young consumers or drivers. As you can see, the car insurance companies determine different rates based on their own criteria.

Myth # 2: Car insurance is not affected by my credit score.

Unfortunately, car insurance companies can and will do a credit check to see how you fare in the financial sector. With many insurance companies, credit score means better lower. Your credit score may be checked when you buy new insurance, transfer to another agency policy, and when it came time to renew the policy.

Myth # 3: If an accident occurs, while other people drive my car, their car will automatically include accident insurance.

No matter who is driving a car, your insurance will have to pay if the accident is considered their fault or in some cases, "there are no mistakes." Motorists insurance itself may, however, act as a backup, scope and cover the excess demand should they arise. Remember, this is your car and your responsibilities no matter who is driving.

Myth # 4: Type of car I own does not affect my car insurance.

It would be better if you can have a beautiful sports car you always dreamed of without affecting your insurance rates, but this usually does not happen. Many auto insurance companies consider what kind of car you have, especially when the insured drivers under the age of 25 years. Sports car insurance usually provides a higher level because these cars tend to prompt a "show-off" performance and / or speeding. So, buy a nice sedan for teenage beginners!

Myth # 5: The government will set so that car insurance prices do not need to shop.

This is false. The state government set up the car insurance companies and their rates to ensure justice for companies and consumers, but the government does not set a tariff. Your price is determined by the insurance company based on your credit score, age, where you live, type of car you drive, marital status, and other factors.

As you can see, there is no reason to complete a corporate level without comparing car insurance companies. You can compare insurance easy to use online resources to find out which companies offer the best coverage at premiums you can afford.

Chris Robertso