People known little or nothing about auto insurance and if they did they would be able to manage the costs. Majority of young drivers are blinded by high costs and other myths their friends tell them. Here are 10 things everyone needs to know about car insurances. Read this list twice before making any unwise choices.
1. Speeding tickets do affect insurance rates.
If you are found guilty, you are a flagged driver. Think twice before accepting a guilty plea. You are always innocent until proven guilty. Most insurance companies will give you one grace ticket before your insurance rates go up. It will take 3-5 years to take it off the record.
2. Parking tickets and red light camera tickets do not affect insurances.
You probably will be forced to pay the tickets off when doing yearly inspections and car license plate renewals. Remember that red light camera tickets identify the car but not the driver.
3. Auto Car Insurances cannot cancel insurances after 2 months, depending on your policy.
They, however, can decide to not renew you because of at fault accidents and at-risk driving. One should note that providing false information is grounds for cancellation.
4. Insurance prices are not just determined by accidents.
They are based on how much money they will have to pay out for you. That means that the higher the deductible is, the less your rates will be. If you’re willing to pay more for your misdemeanors, the insurance will feel less threatened.
5. If you buy a sports car, you will probably pay big bucks for it.
If you are buying a brand new car,which is a sports edition, with nice additions, you probably will pay big bucks. You will pay even more if you are under 25 years of age.
6. You are legally required to tell the truth when giving details for car insurance.
Do not just put the national average for mileage, if you think you drive less. Insurances ask this question for a reason, so take it quite seriously.
7. If the cost of your accident is less than the deductible, do not call your insurance to make a claim.
If there is no fault, your insurance will go up. You are better off paying it yourself. This mistake is very commonly made by drivers.
8. Insure all drivers.
Do not let your kids drive the car without them being insured. You will pay the price if the insurance finds out. Your child will also pay the price because he will be on the record. Your insurance may not be renewed as a result.
9. The color of your car determines the price of insurance rates.
As funny as this sounds, it is true. The color of your car determines the price of insurance rates. Do yourself a favor and do not buy anything bright.
10. Compare, look around, and negotiate.
Call different insurance brokers and know your facts. If you do not know your facts, you may pay the price in the end.