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car insurance myths you need to know

car insurance myths you need to know

There are a lot of car insurance myths that continue to be spread around by consumers. One of the biggest reasons for car insurance myths is that you do not exactly know how your car insurance is calculated by your insurance company. These calculations are a closely guarded secret by most car insurance companies, but there are a few clues as to what makes our car insurance rates rise.

It is important when you compare car insurance rates to understand as much as you can about how your car insurance rates are calculated and to debunk the popular car insurance myths in order to ensure that you are saving money on car insurance as much as possible. For every six months of accident-free driving you can earn a check from Allstate Auto! Quote Now!

Top Car Insurance Myths

MYTH #1 – THE COLOR OF YOUR CAR DOES NOT MATTER

The color of your car does not affect the price you way for your car insurance premium. This is one of the most popular car insurance myths that continue to circulate throughout the country and across generations. But, the fact of the matter is that car insurance companies do not car what color your car is when they calculate your car insurance premiums. There are many many auto insurance leads that you can check out to compare insurance premiums.

Red cars do not equate to a higher insurance rate simply for the fact of being red. Car insurance companies care about their historical data on the likelihood that your make, model, and year of car will be damaged. They care about your history of driving and the likelihood that they will have to payout a claim against your policy more than anything else when determining the price they will charge you for your insurance premium.

MYTH #2 – SPORTS CAR DRIVERS ALWAYS HAVE HIGHER CAR INSURANCE

Owning a sports car does not automatically equate to having higher car insurance. Studies have shown that there are many other types of car classes, certain makes, and models that are much more costly to insure than sports cars.

Car insurance companies set car insurance premiums based on the cost and likelihood of a claim based on each individual person and the type of car insured. Some cars have historically higher repair costs and higher replacement parts costs that can significantly increase the cost of their insurance premiums.

MYTH #3 – YOU ARE RESPONSIBLE EVEN IF YOUR FRIEND IS DRIVING

For most car insurance policies, the insurance policy remains with the vehicle and not the driver. So, if you allow your friend or someone else to drive your car, you and your insurance company could still be still responsible for any damages or injuries from an accident.

Once your insurance policy has been maxed out, you may be able to tap into the driver’s insurance policy in the event of an accident with a lot of damage and loss. Do not make the mistake in believing the car insurance myth that you are not responsible when you loan your vehicle to someone. You and your car insurance could still be on the hook.

MYTH #4 – I’M COVERED IF MY CAR IS TOTALED

Your car may not be completely covered by enough insurance to pay off your loan if it is totaled. Often borrowers roll old car loans into new car loans, and most new cars depreciate significantly as soon as you drive it off of the car lot. This can create a gap between the true value of the car and the amount of money that you owe the bank on your car loan.

Almost all car insurance policies have a clause that they will only payout the cost of your vehicle. They will not pay the amount of your loan balance if your car is worth significantly less. You need gap insurance which is a separate and specific type of car insurance used just for this purpose. Gap insurance covers that gap between the amount your car insurance will payout and the rest of your loan balance on the car.

MYTH #5 – MY CAR INSURANCE COVERS MY RENTAL CAR

You need to check with your car insurance company before you rent a car to ensure that you have the proper car insurance clauses that cover rental cars on your insurance policy. Not all policies cover rental cars. It is not an automatic entitlement. You need to have it added to your current car insurance policy, and typically this is a very inexpensive provision to add to your policy.

Depending on the credit card you use, you may already have car insurance as a credit card benefit. Many credit card companies offer car insurance coverage for rental cars when you use their credit card. You should check to see if you’re covered for rental car insurance by your credit card.

MYTH #6 – ITEMS IN YOUR CAR MAY NOT BE COVERED

You may find that your personal property, like a laptop or cell phone, may not be covered under your car insurance policy. These types of items are typically excluded from your car insurance policy, and claims must be filed under your homeowner’s insurance or renter’s insurance. This may not be very cost effective though depending on your homeowner’s insurance deductible which often tends to be higher than a simple car insurance policy’s deductible.

Get A Car Insurance Quote Here

For an affordable Central Oregon Car Insurance quote contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online. 

Understanding Oregon Insurance Laws

Understanding Oregon Insurance Laws

Oregon insurance laws can seem complicated to any driver but they are actually a lot simpler than they seem; the first form of insurance that drivers in Oregon are required to have is personal injury protection, this form of insurance protection will cover the driver up to the first $15,000 dollars of their bills, that result in injuries from an accident.

For those drivers who have over $15,000 worth of medical bills, their health insurance will cover the amount over $15K, if a driver doesn’t have medical insurance they will be required to pay for any additional bills or expenses out of pocket.

Lost Wages

Personal injury protection will also pay up to 70% of an injured drivers wages or up to $3,000 in one month, if the driver is out of work for more than fourteen days in a row. For those drivers who have medical bills and other costs that result from that car accident that result in over $15,000 dollars in damages, the driver will have the option of filing a claim against the other drivers auto insurance for their pain and suffering.

Personal Injury Claim Worth

It’s difficult to determine how much a personal injury claim is worth, a driver who wants to follow Oregon insurance laws will have to hire a Personal Injury Attorney to make sure that their best interests are represented in court. Once a lawsuit is filed, the other drivers attorney will be required to supply a copy of their insurance policy’s limits so that the driver who may have sustained over $15,000 in damages will be able to have the other drivers insurance cover those damages instead of having to pay for any additional costs out of their own pocket.

To learn more about insurance laws in Oregon and get the best deals on auto insurance, contact the Tye Farnsworth Allstate insurance agency today at (541) 318-8835.

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