Do Not Believe These Top 5 Auto Insurance Myths

Posted on September 29, 2021 by gcsjunk

Here in Kentucky, if you want to legally drive a motor vehicle, you will need some form of qualified car insurance. But before you choose a carrier, or file a claim if you already have one, be sure you know what to believe and what not to believe about automotive insurance. Continue below to learn the top 5 car insurance myths that people tend to fall for so that you may be a wiser driver and car owner from this point on.

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Common Car Insurance Myths and Misconceptions

☒ Car Insurance is More Expensive for Red Cars

No, the color of your vehicle will not and should not have any influence over your carrier’s premiums. A red car is not more expensive to insure in comparison to vehicles of other colors. Factors that impact the total rate of your car insurance premium include the make and model of your vehicle, the body shape and engine size of your vehicle, as well as your age, driving record, and credit.

☒ Do Not Report an Accident to Avoid an Increasing Rate

Many people believe that if they simply neglect to report a car accident to their insurance company, it can prevent their car insurance rates from increasing. But this is not the case. First of all, if you are in a car accident with another driver, it is imminent that they will report to their own insurance company that will eventually notify your own.

Second, failing to report to your insurance company may have penalties that are decreed in your agreement, such as suspending or revoking your auto coverage. Regardless of what you do, rates are bound to increase for all sorts of reasons, and at the full discretion of your insurance carrier.

☒ Insurance Pays for Any Remaining Loan if the Car is Totaled

Anyone who believes this will eventually discover some devastating news once they report to their insurance company. Car insurance companies do not pay off loans on cars if they are totaled. Car owners are responsible for paying the remainder of any car loans, regardless of the vehicle’s condition or existence.

Car insurance companies will only pay out the current market value of a vehicle, or less depending on the type of auto coverage you pay for. Some policies do not pay market value, but rather, a percentage of it for totaled cars.

☒ Insurance Premiums Increase the Older You Get

Many people wrongly assume that car insurance gets more expensive as we age, but this is not necessarily true. If you continue to accrue a negative driving record with several infractions and offenses, then this could be true. But when it comes to mere age, there is no impact on the rate at which car insurance premiums increase, or the rate they are quoted at the time of inquiry.

☒ You Can Keep a Totaled Car and the Insurance Cash

As a claimant with full coverage, you will receive a payout for your totaled car’s current market value, minus depreciation. In some cases, insurance does not allow a claimant to keep a totaled car at all, and must physically surrender it to them prior to receiving a check. If you decide to keep your totaled car, you must notify your insurance company, who will then pay you a drastically reduced amount for it. Most often, it is at least 50% less, which is a significant deduction.

Did you total your car, but it is not covered under an insurance policy? Contact GC’s Junk Cars at 502-804-5605 to sell your car for cash on the spot to a trusted Louisville junk car buyer! We offer free junk car removal in all surrounding counties.

You Should Also Read:

Will Keeping My Totaled Car Reduce My Insurance Claim Payout?
The Most Expensive Auto Repairs That Can Total Your Car
What to Do After Totaling an Uninsured Car in Kentucky

Car Wreck Insurance Myths to Beware Of

Posted on December 29, 2020 by gcsjunk

Now that winter is approaching, and snow is just around the corner, safe driving cannot be talked about and understood enough. But in addition to safe driving is the importance of accurate insurance awareness. Knowing what to expect from your car insurance policy is crucial, which is why it is strongly suggested to review your benefits before the start of each winter season. More importantly than knowing your automotive insurance benefits, is understanding them so to not fall victim to the common insurance myths out there.

Continue reading to learn about the most common motor vehicle insurance myths, and the truths behind them.

Car Insurance Basics to Understand

Motor vehicle accidents are among the most common causes of death in this country. Practicing safe driving techniques is critical, but understanding your insurance policy can protect you and your family on the road as well. More than accidents, drivers fall victim to false insurance myths, rumor mills, and word-of-mouth.

**Most Common and Untrue Car Insurance Myths:**

☒ Credit Score Has Nothing to Do With Insurance Rates. Credit scores plays a major role in the amount of the total cost of your premium. That is because most car insurance companies use credit-based insurance scores to help determine risk. Not only does credit score influence insurance rates, it also can affect loan eligibility.

☒ Red Cars Cost More to Insure. The color of your car has nothing to do with the cost of your insurance premium. The primary factors that insurance carriers tend to base rates on include the make and model of the vehicle, the vehicle’s age, the vehicle’s body type, the vehicle’s engine size, the driver’s driving record, the driver’s credit history, and the driver’s age. So go ahead and get that candy apple red two door you’ve been eyeing; it will not affect your total insurance payment.

☒ New Cars Cost More to Insure. It is understandable that this myth has fooled consumers, since sometimes it is true; especially if your down payment is small. A new or expensive car may require more coverage, but the rates do not always increase simply because it is a new vehicle.

☒ Rates Automatically Increase After a Filed Claim. Again, this myth is understandably confusing. Although sometimes car insurance rates will increase after a claim, it is not always the case. The primary factors looked at include the severity of the accident, the driver’s claim history, and the total cost of the claim.

☒ Lapses in Coverage Do Not Affect Rates. Even if you are not driving, a lapse in insurance coverage will affect your car insurance rates when it comes time to start driving again. In fact, it can have a large financial impact on your total car insurance premium. So do not fall victim to this myth!

☒ You Can Keep a Totaled Car and Claim Insurance Too. Car insurance companies do not allow claimants to keep their totaled car if they also accept the insurance payout. They must choose one or the other. In some cases, claimants are not allowed to keep their car at all, even if they forgo a payout.

How to Get Cash for Your Wrecked Car in Kentucky

Call GC’s Junk Cars at 502-804-5605 to sell a junk car in Louisville and its surrounding counties, today! We accept all make and model vehicles, regardless of age or condition! There is never a middleman, which means you walk away with more cash in your pocket. Furthermore, our Louisville junk car buyers offer free towing haul away! Request a free estimate for your junk car, today.

Will Keeping My Totaled Car Reduce My Insurance Claim Payout?

Posted on August 25, 2020 by gcsjunk

After totaling a car, your thoughts are likely all over the place. From medical attention and financial responsibilities, to time of work, kids, family, and more, the aftermath of wrecking a car can be quite overwhelming. But the one thing you should not have to concern yourself with is your automotive insurance claim. When you signed your policy, you agreed to a specific pecuniary procedure in the case that your car is deemed a total loss after an accident or damage.

So, when you are considering the possibility of keeping your car after you total it, your insurance carrier should already have a plan for that option. However, keep in mind that there could be some financial disadvantages to doing so. Furthermore, it might not be an option at all depending on your particular insurance policy limits and restrictions.

Continue reading to learn more about keeping a totaled car and what it could mean in terms of collecting a payout through an automotive insurance claim.

What You Need to Know About Car Insurance Claims and Total Loss Vehicles

In standard automotive insurance policies, if a claimant with full coverage wrecks their vehicle, the insurance company will provide payment to repair the damages. If the insurance company decides that a claimant’s car is totaled, they will officially deem it a total loss, which means the cost to repair the damages exceeds the current cash value of the vehicle. In this case, the claimant with full coverage will receive a payout for its value, minus depreciation. In some cases, an insurance policy does not allow a claimant to keep a totaled car at all, and must physically surrender it to them prior to receiving a check.

If you wish to keep your totaled car, the first question you might have is, “Will I get paid less for it?” The answer is an unequivocal and resounding yes. This makes sense, otherwise insurance companies would have to operate on an entirely different business model. How much less you get from your insurance company will depend on several factors, which you will have to read in the fine print of your policy. Most often, it is at least 50% less, which is a significant deduction.

Where to Sell a Totaled Car in Louisville, Kentucky

Call GC’s Junk Cars at 502-804-5605 to sell a junk car in Louisville and its surrounding counties, today! We accept all make and model vehicles, regardless of age or condition! There is never a middleman, which means you walk away with more cash in your pocket. Furthermore, we will dispose of your vehicle according to all Kentucky EPA regulations. You can rest assured that your car will not have a negative impact on our environment. We also offer free towing haul away!