Insurance is a topic of discussion we can have for hours especially when we have a story to tell. Also, a topic that everyone may have an opinion about. Have you heard people saying that it is total waste of money and companies will not pay your claims anyway? If someone says this to you check if that person have coverage or not. Usually, they like to trash talk the insurers but they buy policies themselves anyway because it makes sense and risks are too high to face alone.

It is possible that you read stories on the newspaper or hear from someone that certain company didn’t pay a claim. You shouldn’t take these on their face value. No self-respecting company would refuse a legitimate claim. It is bad for business and they have reputation to withhold. They may have good reasons to refuse a claim. Remember that while there may be one or two lousy insurers but there are millions of people who try to cheat companies and get paid for a damage or injury that never happened.

totaled carsSometimes people may speculate about why their premium is higher. Some may say that because he has a red car and another person may believe it and spread it as if it is a fact. Always check your facts from a reliable source. Specifications of your automobile will affect your premium a lot but not the color. When you have a car that is easy to break into and steal you will pay higher premiums. The same applies when you have a sports car or SUV because these are high risk vehicles. Hence you get charged higher, not because they don’t like the color of your car.

You may just have a speeding ticket and someone may tell you that your insurer will never going to find out about them. This is not true since companies can quickly check your license against DMV records and find out exactly what type of tickets you received and how many points have been deducted from your license. So, it may not be smart to hide it from the companies especially when you are getting quotes. And your policy requires you to inform the carrier of any changes in your circumstances. It is best to talk to them when your penalty has been confirm. They may let it slide this time if it is the only record on your name. Keeping quiet about it is not always the best solution.

some people may not even know what is covered with their policies. You may come across a guy who only has a liabilities only policy and thinks that he is going to get a new car if something happens to his. This brings us to another common misconception. Many policyholders think that they will get a new car if theirs is totaled. This is never true as it would lead to serious fraud and people would keep rolling their old cars off the cliff when it gets old. You would only get as much money as the market value of your car if you were to sell it today. Learn your facts before believing in stories and myths.