Car insurance is a topic that many people struggle to understand, especially, when someone begins sharing incorrect facts. Most people still rely on car insurance myths that frequently lead to misunderstanding and errors that are actually very expensive. We are going to expose and explain five misconceptions about car insurance, through which you will get a superior understanding, and make logical decisions.
Myth 1: The Color of Your Car Affects Insurance Rates
Perhaps the most common reason misconceptions have is that the color of a car can affect insurance rates. It seems that there is a universal belief that red cars tend to be charged higher premiums by insurance companies, but the idea that white cars may actually have cheap cover is somewhat of a fact. The business has been hearing myths for a long time, but the fact is other.
The insurance companies are not which color of a car is, or any outwards other sides affect them, rather than the characteristics that are required like made, model, and year, etc, and safety features and records are elements that compare where the insurance price can be lower. In this way, your car’s color, no matter if it is red, blue, or green, cannot be the reason behind high insurance rates.
Myth 2: Your Friend’s Insurance Covers Your Car
Many people think that if your friend borrows your car and he/she has the insurance, that insurance will be the one that will pay for any damage in the event of an accident. This argument can be seen as simplistic, but it is not completely accurate. In the usual course of things, the insurance is meant to cover the car, not the driver.
In the scenario when your friend runs into an accident while behind the wheel of your car, there is one surecase. Your insurance would be the main cover. This implies that the claim which arises as a result of the accident will be filed through your policy as a play-first-under-your-names policy. Based on your coverage and your friend’s driving history, this could result in an increase in your premiums. Therefore, the use of this practice always confirms whether the driver has a proper policy or not.
Myth 3: Comprehensive Coverage Covers Everything
Instead of imagining that comprehensive insurance will meet all insurance needs, many people believe that. The idea of the comprehensive policy provider determining on the provider of all encompassing insurance is incorrect. Although comprehensive insurance includes varying degrees of protection against theft, vandalism, and natural disasters, you will still need collision coverage for damages caused by accidents.
Collision coverage is the missing link for those seeking to be shielded against accident damages. Mapping out the differences between the two kinds of coverage is essential to guarantee the safety of your property that fits well inside your pocket. Not having comprehensive coverage can to the contrary be the reason you may experience high financial loss from an accident.
Myth 4: Car Insurance Covers Stolen Items
One more mistaken thought is that if someone takes personal items out of your vehicle and they are stolen, then the car insurance will compensate for the cost. However, this is not true. Car insurance mainly pays for car damages but it doesn’t include the personal things that are inside the car.
When the valuables are taken away from the vehicle, you should get coverage for your homeowner’s or rental policy. It is important to review your policies and be clear on what is covered so that there is no surprise with the money you need to pay. Make it a point that you guard valuable items and do not leave them out in view of the vehicle to reduce the chances of theft.
Myth 5: Thieves Prefer Newer Cars
This one’s challenging to understand because drivers go for breaking the newest made cars that will make the car thief steal your new car. As a matter of fact, this is a widespread myth that doesn’t let you win arguments against it. Thus, in turn, the car thief will be attracted by the newest technology of the vehicle. However, the truth of the matter is that the more recent your car, the greater is not the advantage for the thief but the contrary is the case.
In the case of second-hand cars there is a greater likelihood of the lack of parts of regular stocks, alongside with the ones that are in demand and the easiest to be sold. The reason why newer cars are less attractive is that they are often equipped with sophisticated anti-theft systems which drives away thieves. This is why thieves go for the former as they can remove the pickings from the vehicles and sell them because of short supply issues.
Conclusion
Part of the problem with car insurance is the spread of wrong information, which can lead to misunderstanding and subsequently cause expensive errors. Through busting these misinformation myths, we seek to bring the clarity and the power to you to make your insurance choice wisely. Always consult your insurance agent to grasp your coverage and see to it that you are protected well enough.
Knowledge, after all, is absolute power when it comes to insurance. Should you have a particular question or need an explanation of your policy that maybe not everyone else does, be brave enough to approach a specialist. Be enlightened, be completely insured!
