8 Auto Insurance Facts For Dummies -Part 2

By James Tam on November 18th, 2006

Dummy Fact #5

Does the government set insurance rates?
Most likely not. The government is to insurance and rates are set by individual insurance companies.

Dummy Fact #6

If I buy a car right now can I get insurance on the spot?

Most companies will not cover you on the spot. However if you arrange with the car dealer they can get you insurance when you pick up the car. Could be a few days. Alternatively its best to organize your own insurance a few days before you pick up the car.

Dummy Fact #7

I’m a male who’s under 25. What’s my insurance rate going to be like?

Pretty high. Most male drivers under 25 are and statically proven to claim more insurance than any other age and gender bracket. So girls, you’re in luck, cheaper insurance than the boys.

Dummy Fact #8

Should I get insurance even if I’ve never made a claim for 10 years?

Yes, everyone should have insurance for the just in case moments. Like if someone car jacks your, you hit someone, there’s so many ways that you can get into an accident or theft. Even if you don’t make a claim for a long time, you’ll sleep better at night if you had insurance.

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8 Auto Insurance Facts For Dummies -Part 1

By James Tam on November 17th, 2006

There are a few things that most people are not aware of when it comes to car insurance so I’m going to attempt to clear them up for you. Read it over and over if you have to because it’s going to help you with your auto insurance incase you get into any trouble

Dummy Fact #1

Does color of my car or motorcycle affect my insurance rate?

No. The only things that affect your rates are physical things such as engine modifications, stereo systems, leather seats, but color is does not affect you at all.

Dummy Fact #2

Why you shouldn’t let your friends drive your car.

If you’re friend has insurance and they drive your car, they are not covered by their insurance nor by your insurance. Each drive is only insured to drive his or her car only. No questions asked. And the risk is your insurance company can decide to take you as a high risk drive because you let other drive your car which in turn could lead to theft, accidents and more.

So don’t let anyone drive your car.

Dummy Fact #3

What does no fault insurance mean?

This is a really useful type of insurance claim. If you or someone else causes the accident, no matter who’s fault it is you can still make a claim regardless.

Dummy Fact #4

Will credit scores affect insurance premiums?

Yes, actually your credit score is important aspect to insurance. So keep a good credit score at all times if you credit score is bad your coverage might be higher or you might not be covered at all.

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