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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