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Auto insurance can become very confusing for consumers. According to the consumer research data, many car owners do not know what type of insurance they need or the difference between different policies.

Auto insurance can become very confusing for consumers. According to the consumer research data, many car owners do not know what type of insurance they need or the difference between different policies. We’ve put together a list of tips and common misconceptions that could help you choose a policy that’s right for you and your family.

  1. Color determines the price of auto insurance: False – Car insurers are more interested in the make, model, year, body style, engine size and in some areas location (i.e. street parking vs. garage).
  1. You can keep your rates from rising by not reporting an accident: False – If you are involved in an accident, the other party involved may file a claim against you and your insurance company for damages or injuries. When this happens your rate may increase. Also, if you received a ticket because of the accident, it can appear on your driving record and cause a rate increase as well. {DMV.org/Insurance}
  1. Credit scores do affect insurance rates: True— Credit scores are an indication of how well you manage your finances. Many companies look at this number when purchasing or leasing a vehicle and it is a main factor when calculating your insurance rates.   Note: California only allows marital status as a factor in rates. Also, income can impact customer premiums in Los Angeles. {Source}
  1. Seniors pay more for car insurance: False– Drivers over the age of 55 can qualify for a reduction to their insurance rates (if they successfully complete an accident prevention course). What’s more, if you are no longer working and driving less, you may also be eligible for a discount up to 5%.
  1. The insurance company can cancel my policy at any time: False – Unless given an adequate reason to do so, can insurers cannot arbitrarily cancel a policy in the middle of a term.
  1. Loaning your car to a friend who gets in an accident – Car insurance companies provide insurance for the registered vehicle, not the driver. Ultimately, you are responsible for an accident and any damages that occur, even if you were not the driver.
  1. Insurance policy discounts – A student with good grades, low auto mileage as well as combining auto, home and other policies can reduce insurance rates. Make sure to always ask insurance providers what discounts are available when shopping around. {Source}

Lastly, The Law Offices of Larry H. Parker recommends having uninsured/underinsured motorist coverage. At the very least, having liability insurance coverage because being uninsured is never worth it.

If you or a loved one has been injured in an auto accident through no fault of your own, contact The Law Offices of Larry H. Parker today at (800) 333-0000 for a free consultation. You can also visit us online to submit your case and receive a 10% discount. Our experienced car accident attorneys are here to help you get through these difficult times and fight for you.