Auto Insurance: Common Myths & Misunderstandings - Part 2

Through my experience as an insurance agent I've worked with thousands of drivers to break down those barriers to understanding how auto insurance works. In part 2 of this series I will discuss a few ticket-related myths and misunderstandings that seem fairly common. I sincerely hope this helps!

#1. DUI = Drunk Driving This has been discussed on Dr. Oz's show, so I know that at least a few Baby Boomer women have learned this, but for those of you who haven't... While drunk driving can most certainly lead to a DUI conviction, it is not the only form of DUI conviction out there. What many don't realize is that your prescription and over-the-counter medications can also have the same result if combined with driving. To remember this very important lesson, just think about what DUI stands for: Driving Under the Influence . The name does not specify alcohol. It's not a DUA.

Tip: If you've taken any type of medication and think that there is any chance it might compromise your judgment, then don't drive! Either wait until the side-effects have worn off, or find some other means of getting from point A to point B.

#2. Insurance Agent: "Do you have any tickets or violations in the last 5 years?"

Driver: "Yeah, but I took care of those."

Some drivers believe that if you simply pay a ticket that it will go away, but just because you didn't have to go before a judge does not mean that the ticket has magically vanished from your record. Also, if you are before a judge and he tells you that the ticket will be dismissed, make sure you have documentation to that effect, because that judgment will not always be reflected on your record. In my experience, the only tickets that don't show up on your record are camera tickets* and parking tickets. *Please note, however, that in some states (such as New York) those pesky camera tickets could very well show up on your record. Now, if your goal is to simply withhold this information in hopes of getting a better rate, don't hold your breath. Your agent will run your Motor Vehicle Report (MVR) and will find out the truth.

Tip: Be up front with your agent by detailing out your driving history to the best of your knowledge. The more honest you are with your agent, the more willing your agent will be to truly find you the best rate available.

#3. Parking tickets are not real tickets. While parking tickets don't show up on your MVR, they are still very real and should be treated as such. In the 22 states that I've written insurance in, unpaid parking tickets has been the biggest cause of suspended driver's licenses. In some extreme cases, clients have gone years without being able to legally drive and racked up hundreds of dollars in fines all because of one parking ticket.

Tip: Pay your parking tickets or they will come back to haunt you!

Questions?  Comments?  Feel free to drop me a line!