N. Raleigh | (919) 878-7786
S. Raleigh/Garner | (919) 661-1100
 

Think you know everything about auto insurance? Take our pop quiz, true or false version, to measure your knowledge.

   1. If I buy a red car, I’ll pay higher car insurance.

   2. Some form of liability insurance is required in every state.

   3. A hybrid or electric car will cost more to insure than a comparable conventional vehicle.

   4. If I don’t have enough money to pay my car insurance premiums, there won’t be any problem if I let my coverage lapse for a few months – as long as I don’t have a wreck.

   5. Gap insurance makes car payments for me if I’m short on money.

   6. My collision insurance covers me if I hit a deer.

   7. If I’m driving and cause a wreck that’s my fault, my insurance company will pay for repairs to my vehicle.

   8. My insurance agent asked about my credit report because he wanted to see if I could put my premiums on a credit card.

   9. Old cars are stolen more often than new cars.

   10. It’s OK to let my friend drive my car – his insurance will pay if he causes a wreck.

Answers

   1. False. Insurers don’t care what color your car is. An agent will ask you a number of questions about the vehicle – the year, make, model, body type, engine size, and even whether it has daytime running lights. But the agent won’t ask – and genuinely doesn’t care – what color it is.

   2. True. Some states also allow you to demonstrate proof of financial responsibility by posting cash deposits or surety bonds, but very few drivers can or do follow this path.

   3. False. Some providers consider “green” vehicles to be safer than similar conventional vehicles because they’re heavier and even offer discounts for coverage. However, you should remember that premiums are based on many factors, including your driving record, so even buying a hybrid might not mean lower premiums if you’ve had a number of wrecks or traffic violations.

   4. False. A lapse in coverage is one of the worst factors in determining how much you’ll pay for auto insurance. Companies consider continuous coverage as a sign of stability. A lapse, even a short one, can mean much higher rates for coverage.

   5. False. Gap insurance is designed to pay the difference between what you owe on a car and what it’s worth. In most cases, interest is front-loaded on a vehicle loan, so there’s a lengthy period in which the car is worth less than you owe on it. If you don’t have gap insurance, you’d still be responsible for paying the difference should you wreck it and suffer a total loss.

   6. False. Collision insurance – which is optional, unless your lender requires it – covers you when you hit objects such as trees or other cars. However, it doesn’t cover your car if it collides with an animal such as a deer. Comprehensive coverage would help in this situation.

   7. Maybe. Your liability coverage will pay for damage to the “other” vehicle. However, you’ll need collision coverage to help cover repairs to your own car. You’ll also have to pay a deductible before you get any help. Don’t have collision coverage? Then you’re on your own.

   8.  False. Providers in many states use your credit score to predict your risk of filing a claim. It’s a controversial practice, but carriers believe poor credit habits translate into high risk for them.

   9. True. The current car most popular with car thieves, according to the National Insurance Crime Bureau, is the 1994 Honda Accord. The reason: Its parts are pretty generic and can be used in several models.

  10. False. In most states, the car owner’s insurance is the primary insurance and must pay for damage or injuries.

So how’d you score? Here’s one last true or false: It’s a good idea to shop my car insurance with multiple carriers every year. True: That’s the best way to get affordable premiums, excellent coverage, and the discounts you deserve.

For more information on Raleigh car insurance, give ACF Insurance Services a call at 919-878-7786.

(Source:AutoInsurance.us)
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