Friday, 18 October 2013

Little Known Facts About Auto Insurance

Little Known Facts About Auto Insurance


Don't always believe everything you hear. That statement also goes with what you read on the internet too. There are many people out there that are misleading about car insurance and how it works. These are the most common myths about car insurance. When someone tries to mislead you with one of them, please set them straight.

• The color of your vehicle affects the rate:

 A red or yellow car costs no more than a gray or blue car. This is one of the biggest myths told. Don't be concerned about the color of vehicle you are buying.

• When you move, your rates will stay the same:

 Depending on where you move to, your rates could increase or decrease. There are localities that are more accident prone than others and insurance companies set their rates according to the statistics.

• The rates will be the same at all insurance companies:

 Shop around! Not all companies will hold you to the same rates.

• If a person is driving your car and has an accident, their insurance covers it:

 No way; your insurance is the liable party. It is a good idea to be very choosy in whom you allow to drive your car.

• Your personal auto insurance covers if you are driving for business:

 This is another big myth. If you are driving your automobile to deliver food or do business dealings with, your car is not covered by your personal auto insurance. Speak with your agent and they can probably get you into a policy that will cover you and your car during business driving.

• Insurance companies can cancel a policy anytime they want to:

 There are State laws that keep insurance companies from canceling a person in the middle of a policy. They have to be able to show very good grounds for doing so.

• Items in the car are covered under my insurance policy:

 Only the people and the car itself is covered with full coverage insurance. Your personal items such as a laptop or stereo system are usually not covered unless you have a special policy that does.

 Always ask an insurance agent before just believing what many people say about insurance policies. Just because someone or a website says a statement doesn't always mean it is correct. Check the facts and know how auto insurance works for you.




Insurance: A Guide

"Remember kids, I have life insurance" - Adam Savage

This is a guest article from Tatyana Levin

These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).

 The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.

A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed.  But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.

Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.

 These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason.  The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.

The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.

About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com

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