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Prevalent Misconceptions About Auto Insurance: Setting The Record Straight

Auto insurance is really quite a simple concept. It’s not tough to get overrun with details when peering below the surface. Given this, it really is not surprising that there are lots of myths perpetuated among motorists with regards to the industry.

The problem is, these myths lead to confusion. This, in turn, leads many people to make poor decisions regarding their coverages, and the rates they pay for them. Below, we’ll bring six popular fallacies to light. Our goal here is to debunk – or, at least clarify – them, so you can make better auto insurance decisions for you and your family.

#1 – A No-Fault Insurance System Eliminates Fault

No-fault insurance is poorly named. Many people (understandably) think it means that those who are involved in a collision are spared any fault, even if they caused the event. This is a common misconception. A no-fault insurance system means your insurer pays for damages and injuries sustained by you as the result of an accident. Other involved parties – including passengers – would likewise seek compensation from their own insurers.

Fault for the event is still applied to the appropriate parties based on the province’s fault determination rules. This can, of course, affect those parties’ premiums.

#2 – Driving A Red Car Means Paying Higher Premiums

By itself, the colour of your vehicle has no effect on your rates. In fact, few insurance companies ask their policyholders to disclose this information. Your rates are based on a formula that takes many criteria, such as your driving record, living address, and the average number of miles driven each year, into account. Colour is not one of them.

#3 – Car Thieves Target Late Model Vehicles

Actually, evidence shows the top stolen vehicles in Canada are older makes and models. According to a 2009 report from the Insurance Bureau of Canada (IBC), the top five most stolen vehicles are the following:

2000 Honda Civic SiR 2-door
2003 Cadillac Escalade ESV 4-door AWD
1999 Honda Civic SiR 2-door
2006 Chevrolet/GMC Trailblazer SS 4-door 4WD
2002 Cadillac Escalade EXT 4-door AWD.

If you consider lower rates a priority, research the cars, trucks, and SUVs that are most targeted by thieves. They will be more costly to insure.

#4 – Driving Without A Seat belt Doesn’t Affect Your Rates

If you receive a ticket for driving without a seat belt, there is a good chance your insurance company will raise your premiums. Many people think their rates will remain the same since they are not technically putting anyone else at risk. This belief is understandable. However, here is the reason auto insurance companies feel differently:

When you choose to drive without a seat belt, you are placing yourself at far more risk than implied when you signed your policy. For example, suppose your head were to hit your steering wheel, causing brain trauma (and perhaps a hemorrhagic stroke) as the result of a collision. Hospitalization, rehabilitation, and long-term care are expensive. From the insurer’s perspective, the added risk warrants a rate increase.

#5 – Personal Belongings Are Covered If A Car Is Stolen

If you leave your laptop, clothes, or any other property in your vehicle, and your vehicle is stolen, these items are not covered. You will be forced to absorb the cost of replacing them. This surprises a lot of consumers, who assume their auto insurance coverage will compensate them for the loss.

If you keep personal possessions in your vehicle, consider buying property insurance coverage. This way, if your stolen car, your golf clubs, PDA, and anything else you keep inside will be covered.

#6 – Auto Insurance Rates Are The Same

This is one of the most widely believed fallacies about the car insurance industry. Many people assume their current premiums reflect the industry average. In reality, there is usually a large difference in rates between insurers. The only way to uncover the lowest rates is to compare quotes from multiple companies side by side. Take the time to do so at least once a year.

Few people look forward to buying car insurance coverage. Not only are the details often confusing, but it is a product you hope never to need. That said, ignoring the fallacies above is an important step to finding coverage that meets your needs and budget.

International Car Shows

International car shows offer car manufacturers a platform for showcasing their latest cars to an international audience. All the international car shows held all over the world serve as a common platform for manufacturers to get together, share knowledge and expertise, and announce their plans to an eager world audience.

There are many international car shows that have become extremely important and prestigious over the years. Many of these international car shows are held in the United States. Some of these shows include the Chicago Auto Show, Greater Los Angeles Auto Show, Greater Minneapolis and Saint Paul International Auto Show, the New York International Auto Show, the North American International Auto Show, the Seattle International Auto Show, the South Florida Auto Show, and the Washington Auto Show.

In these shows, many of the cars that have captured the imagination of the world are unveiled for the world to see. This also becomes the place where dealers from the world over come together and have a live talk with the manufacturers. Negotiations take place during the days of the show and agreements worth millions of dollars are signed by various manufacturers with international dealers.

Additionally, these international car shows put the city on the international car map. Such shows are revered the world over, and people mark their calendar every year to visit their favorite international car shows.

The dynamics of car shows over the many decades when car shows first began has changed. Not only existing and new cars are shown, but also concept cars that never see the commercial light of day and futuristic cars are also showcased for the general public and international media to see and write about. This kind of convention of many diverse technologies in car manufacturing and development has done a great deal to promote the development of new technology and architecture for better cars the world over.

The Upcoming Buick LaCrosse Super Sport

Edmunds and several leading automotive blogs are theorizing that Buick will finally go ahead and build a sport version of its popular LaCrosse midsize sedan. Unlike the original model, the proposed car will be a true roadster as Buick seeks to inject some youthfulness into its aging model line. This is big news for Buick, which hasn’t built a true youth oriented car since stopping production of the hot-rod Regal Grand National during the 1980s. Will the Super Sport be enough to help Buick recapture a lost segment of the marketplace? That remains open to debate, so let’s see what Buick is planning with the Super Sport and then you can decide for yourself.

For the past several years, Buick has been near the top in most customer satisfaction and quality surveys. After years of languishing much further down the list, Buick decided to truly emphasize quality and that move has paid off. However, quality cars are one thing while exciting cars are another. Quite simply, Buick hasn’t been building cars that are high on the “wow” factor list. Sales have remained flat as the age level of its buyers continued to rise. Anyone who understands the business of cars will tell you that you must continually appeal to a younger audience in order to grow and prosper. Let’s just say that even younger AARP drivers haven’t been heavily drawn to the current Buick model line up.

As far as the Super Sport goes, the car is based on the concept Velite a car that has been appearing at auto shows over the past few years. Much like the Lexus SC430, the Super Sport will be targeting upscale buyers attracted to a combination of luxury, performance, and premium styling. While drive train information hasn’t been finalized, reports of a 300 hp V8 being offered has been circulating. Likely, this engine will be mated to a six speed automatic. A 3.6L twin turbo producing more than 400 hp has also been rumored for the Super Sport, but that engine choice might be scratched if gas prices remain historically high.

Information about specific Super Sport features is rather limited, but if the car holds true to the Velite concept, buyers can expect the following with the Super Sport:

– Heritage styling based on a late 1930s Buick boat tail design. Buick’s recognizable waterfall grille design coupled with decorative side portholes are also expected to appear on the Super Sport.

– 20 inch front wheels and 21 inch rear wheels; rear wheel drive.

– Leather 2 plus 2 seating.

– A retractable hood that will fit snugly into the trunk.

– Full cabin amenities including OnStar and XM satellite radio switches integrated into the dashboard.

Beyond what has been listed, the rest is speculation including possible build and release dates for the Super Sport. GM’s current financial woes will impact the final decision on whether to build this car, but if approval is given a 2008 or 2009 release is possible.

Yes, Buick needs a car of this caliper to breathe new life into a rather uninspiring line up. Prices for the Super Sport will likely exceed $40,000 limiting the car’s appeal to those with significant means. Still, if Buick is able to pull it off the Super Sport it may pave the way for additional model changes, perhaps even opening the door for a Regal-inspired car to rejoin the line up. Now that would be great news for a brand that sorely needs a fresh youth injection.