10 Auto Insurance Myths You Should Know About

The truth about fallacies of many car owners believing that the insurance premium coverage for their new car is covered, and maybe the truth just might make you change course.
(1) "No-fault insurance means, is it not my fault?" That means that your insurance company pays for your damages regardless of who's at fault. No they don’t!

(2) "Can the color of my car affect my insurance rate?" No!
What do influence your rate are your vehicle's year, make, model, body type, engine size, credit history and driving record.

(3)"If I lend my car to a friend and that friend is in an accident, his or her insurance company will pay for the damages…right?" Wrong!

Your car is your responsibility! And guess what, even though you weren't present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.

(4) "Is my insurance rate is set by the government?" No!
The government has nothing to do with your car insurance rate. Where you live, your credit score, marital status and your driving record is what actually affects your premium.

(5) "I recently paid my insurance premium. Is my new car I just purchased is covered?"

Not necessarily. Most automobile policies require that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is desired for the newly purchased vehicle.

(6) "Is it a fact that male driver under the age of 25 pay more for auto insurance?" Yes! Male driver under 25 years old can potentially pay more for car insurance than female drivers. However, across the board, teenagers and mature adults pay more for auto insurance, due in large part because these age groups are typically involved in more automobile accidents.

(7) "Can my credit score have any affect on my insurance rate?" Your credit score really does matter! Many Insurance companies take your credit score into consideration when deciding to increase or renew your auto insurance coverage.

(8) "Even without comprehensive coverage, am I still covered for theft, windstorms, and hail and deer accidents?" Many drivers believe that if they only purchase collision insurance, which covers accidents involving objects, that they will also be covered for incidents that involve vandalism, hail, animal accidents and fires. That simply is not true. You need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all of these situations.

(9) "Can my personal auto insurance cover both my personal and business use of my car?"

If you occasionally use your personal car for business purposes such as transporting clients, going to and from meetings or hauling business equipment, then you will more than likely need to extend your personal car insurance to cover your business use as well. Plus, if your employees use their car while working for you, you will want to also obtain a separate non-owned car insurance policy.

(10) "I've never had nor been involved in a car accident, do I still need automobile insurance?" Yes!

Some drivers are lucky enough never to have been or to be involved in an accident. However, if by chance you do have an accident; your risk of losing everything is great. Car insurance is the best protection you can have in the event an automobile accident occurs. It's also a legal issue - you are required, by law, to have some basic form of auto insurance, and failing to do so carries some fairly strict punishments.

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Before You Buy That Car or Auto Ask About Warranty Terms

As a car and automotive purchaser you may be more than confused what the terms are and legal implications of various purchase, legal and warranty coverage terms. Most people go to a lawyer, and as well pay good money, after they have problems. If you are purchasing a vehicle it pays best to know what the terms are, what the legal terms and descriptions provide for and cover and as well what are the limitations of various types of warranty coverage as well as terms of purchase of sale. By doing so you may well save yourself much heartache, wasted energy time and money. The basic rule is finding out before you sign on the dotted line. It can be said that best way to sail in a gale or hurricane storm is not to be near or in the storm in the first place.

You may well run into certain legal terms, procedures and processes in your quest to purchase a vehicle. Know what the legal terms mean in dealing with automotive warranties and warranty terms. If you do not know – ask. It’s your due right. If you do not understand or get a clear answer then contact either your local state authorities or if need be actual professional legal advice. Better, cheaper and less hassle now rather than later.

After all the basic rule is that “they will promise you the moon “, but once “they have your money” then lots of luck, which is abbreviated as lol.

First of all if the vehicle is labeled or described as “as is” then this constitutes a basic denial of any warranty coverage. Listen carefully – an “as is “vehicle has no warranty coverage in most cases. The dealer or vehicle seller neither assumes nor makes no responsibility what so ever for any repair regardless of any oral statements to the contrary. What this means is that he or she can promise you the moon, but unless it is on paper as specifically covered, almost exclusively with an as-is vehicle then “as is “means “as is”. The seller has no responsibility to fix or care for anything that breaks or does not work on the car, truck, SUV motorcycle or whatever vehicle you are purchasing.

Next in line is the term itself “Warranty”. The term “Warranty” means that the dealer or seller will pay some percent of the labor and some percent of the parts for the covered system or automotive systems that fail during that warranty period of time. In dealing for your vehicle it is always best to ask the dealer or seller for a copy of the written warranty document for a full explanation of warranty coverage, exclusions and the dealers or sellers repair obligations. In some cases now with the internet the dealer may do a printout of the documents from the internet itself. In such cases ensure that company letterhead is stated on a letter or document attesting in some manner and form whom and when this form was given and processed. Otherwise there is no proof later of when, where how and to whom this document was given or was printed by yourself on your own home computer and printer. Stranger things have happened in the automotive trades.

Lastly is the term “Implied Warranties Only”. In this case and situation the term “Implied Warranties Only” , means that the dealer of seller does not make any specific promised to fix things ( even thing and items that need to be repaired) when you buy the vehicle or after the time of the sale. However check with your lawyer and your local state authorities as to what and what not steps dealers and seller can take or claim in your specific legal jurisdiction , regardless of what they want to do arbitrarily or what they claim is correct legal and “by the book”.

The purchase of a vehicle should be a pleasurable experience. You have rights in the matter when it comes to legal questions as to warranty and warranties on your new vehicle. Speak up. Do you homework. Seek legal advice is required.

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