Myths have always limited our thoughts and thus it has been associated with just about anything today. One other thing that myths are related to is car insurances and thus it is important that you are not misled by one when you are planning to invest on one.
Thus here are a few car insurance myths which are prevalent and you need to consciously avoid falling prey to before investing.
1. Colour of the car and the premium of the car insurance are related
This is extremely hilarious but nonetheless, some people actually believe that the colour of their cars have an impact on the amount of premium that they pay. It is said that if the colour of the car is red, the premium of that particular car would be more than the others. However this is not at all true as the colour has no impact on the insurance premium amount under no circumstance
The car insurance premium is actually dependant on other important factors such has the past record of the accident as decided by your history of claim filings, the model, the age of the car, the make and the size if the engine.
2. If a third person is driving your car and he or she meets with an accident, he or she will be covered under their car insurance policy.
This is absolutely untrue and thus at all times it is important for you to give your car to someone who is a safe driver. In case the person drives your car meets with an accident, any kind of claimed files will be recorded and paid for under your own car insurance policy and not the insurance policy that the driver holds. Every car is uniquely covered by separate insurance policies and not under the driver’s policy.
3. I am a safe and good driver and thus do not need to invest in a comprehensive car insurance policy
Many of the people around are too confident of their driving capabilities and think that paying for comprehensive insurance covers is a complete waste of money. However contrary to this very myth, it is actually a good idea to invest in a comprehensive insurance cover as it helps protect one from various other liabilities apart from just accidents. A comprehensive insurance plan helps in taking care against any loss or damage to the vehicle due to natural or man-made calamities or thefts. All this apart, it is time to come off the myth that good drivers never meet with accidents as an accident can happen even when it’s not the driver’s fault.
4. You can invest in a private car insurance and still get covered even if you use the car for business purposes
Personal car insurance policies will provide you with a cover only if you are using the vehicle for personal purposes. However, in case the car is getting used for businesses like taxi services or as a goods carrier, you would surely need to upgrade to a goods carrier or passenger carrying vehicle insurance.
5. The belongings inside the car is also covered under the car insurance
If you think that your expensive cell phone or laptop kept inside the car while it gets stolen or faces an accident comes under the car insurance policy, you are gravely mistaken. Personal belongings inside the car are not covered.
6. Credit score does not have any impact on the car insurance premium
Insurance companies believe that there is a good relation between the credit score and the claim filing history and think that a person with a good credit score are less prone to filing a claim resulting into more discounts.
7. I already own a car insurance and thus don’t need one more for the new car
The insurance cover on your old car would not cover any damage caused to your new one in case of an accident and thus getting a separate insurance for the new car is mandatory.