Top 5 Misconceptions you should know about Car Insurance

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After working in the insurance sector for many years, we have identified the top 10 misconceptions relating to auto insurance. The following myths about car insurance have been some of the most frequent inquiries that customers have while purchasing or renewing insurance coverage for their vehicle. It is best to learn now rather than wait until you consider claiming for your damaged car. Rest assured that it would be too late.

  • Due to my recent ticket for speeding, there has been a significant increase in insurance rates.

Reality: Your rates likely would not even change if it has been your initial ticket for speeding. If you have not had any other citations or made claims previously say three to five years, based on your insurance company, the majority of auto insurance carriers will let you off the hook.

  • The purchase of a brand new plasma TV last year would not affect my car insurance.

Reality: It might be if you did not clear the credit card dues used for purchasing the TV. Nowadays, nearly all insurance firms utilize some kind of credit scoring to determine whether you would be approved for insurance. They would also determine how much you would be required to pay. Rate differences between those having superb credit scores and those with weak credit scores can easily be as much as 50%.

  • My home insurance will cover it as I just rammed the door of my car into the lawnmower conveniently placed in the garage.

Reality: Your homeowner’s insurance does not cover your vehicle. Your vehicle would be protected if you possess Comprehensive (Comp) coverage. However, you would be required to pay your deductible on time.

  • Whether my insurance would cover the damage I caused to a friend’s automobile.

Reality: It will, but not before your friend’s insurance pays. Let us assume that you have a $250 collision deductible whereas your friend has a $500 deductible. Because his insurance provider is Primary, you would need to provide your friend with the $500 deductible payment. Consequently, your insurance would not start to pay till his policy’s maximum limit has been reached. So keep in mind that in this situation, your friend’s opinions will count more than your deductible.

  • If you were hit by a vehicle while riding a bicycle, you would not be covered by auto insurance.

Reality: You might be startled to hear that your direct vehicle insurance policy might provide coverage if you are maimed or killed while riding a bike or even just strolling along the street. Your Uninsured or Underinsured policy would pay for your claim if the individual operating the automobile had no insurance or did not have enough insurance to cover your injuries.

From where to buy car insurance

You can consider if you like to purchase car insurance. However, buying car insurance would require you to gather an adequate understanding and knowledge of the various kinds of car insurance coverage options that you might come across. It is imperative to look for insurance coverage for your car that meets your needs without hampering your budget in any way. At the same time, you should not be complacent with your car insurance coverage to save some money. Rest assured that a penny saved today could result in a bug amount incurred on car repairs and damages, as your chosen cheap insurance coverage might not cover the car comprehensively.

To sum it up

Before investing your time and money in buying suitable car insurance coverage, your best bet would be to search for suitable car insurance coverage options available with the provider. The car insurance agent should appropriate guide you about the best car insurance coverage suitable for your specific needs.