Van Insurance Agents in Milwaukee Wisconsin Dispel Common Coverage Myths

by | Mar 15, 2016 | Insurance

If one owns a red car, they have probably heard that these vehicles get more tickets and cost more to insure. However, Van Insurance Agents in Milwaukee Wisconsin don’t consider vehicle color when setting coverage rates. The premium one pays is determined mostly by their driving record, not the color of their vehicle. Read on to learn five other common misconceptions on car insurance, and to get information meant to dispel those myths.

Those With Collision and Comprehensive Coverage Will Get a New Car After an Accident

This is simply false. Having both types of coverage is a good idea, but paying more for coverage from P & C Insurance Services Inc. does not mean that the insurer will replace a car in the event of a crash. The value of a claim depends on the age of the car and the level of depreciation.

Premiums can be Paid Late Because of the Grace Period

This one’s not true, either. Insurance policies aren’t like credit cards, and they don’t have interest-free grace periods. If one is late with a payment through, the company will drop their coverage. The policy is reinstated when the payment is made, and it’s important to pay on time.

Smaller Cars Crash Less Often Because They’re More Maneuverable

This is another fallacy. These vehicles are usually quick, but they also have higher rates of collision loss. Smaller vehicles can’t stand up to impact as well as larger ones, which makes sense if one has ever seen a small car that’s been in an accident with a larger vehicle. Often, the small car is totaled, while the larger vehicle is largely unscathed.

If the Car is Totaled, the Insurer Won’t Pay the Loan

This one is true. Many people think otherwise, but the amount paid for a new car does not affect its value later on. The driver may be left owing more than the car is worth after a crash. Most lenders offer up to 90% of the car’s value, and interest rates are high, but Van Insurance Agents in Milwaukee Wisconsin don’t typically pay for total losses.

“No Fault Insurance” Means That it’s the Other Driver’s Fault

This is perhaps the biggest misconception on the list. Laws vary by jurisdiction, but areas with no-fault laws typically require companies to pay a portion of a person’s lost wages and medical bills, regardless of responsibility for the accident. Visit the website for more information.

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