Auto insurance cannot escape the grasp of myths that have been known for years now and still, a lot of drivers or insurance policy holders fall victim to. Get to know some of these myths and see if you have become a victim or about to become one.
Insurance policies covering private cars for commercial use like delivery – This is not true since your personal car is registered for private use. This only means that you have to have it registered to be used commercially before you get insurance coverage.
Full coverage for any item stolen from within your car – Full coverage for insurance is not true since there is none. There are limits to the coverage you are given and not everything is covered by your insurance.
A ticket from traffic violation tripling your premium – A single ticket alone will still qualify you as a Good Driver and its discount however, some car insurance companies have their own description of the risks or raises in your premium depending on the kind of ticket that you were given.
Higher rate in insurance policy due to the color of your car – The color of the car has nothing to do with the rate or premium by which you have to pay for. Usually, the factors that would affect the rate of your insurance would be, zip code, age, gender, model, make, engine size, safety record, driving history, likelihood of being stolen and the coverage type.
Credit history is not a factor in insurance rates of cars – Not all insurance companies disregard credit standings and history of their clients. Some would consider how their client’s credit scores are where those with lower credit scores are more likely to stop payment for their insurance.
Minimum coverage for car insurance – Each state or area has their own set of minimum insurance coverage. The problem with minimum coverage is that, the damages that your car and the others involved may not be enough to cover for all the expenses needed for repair. If you happen to be under-insured and got involved in an accident, it would be a financial catastrophe for you especially when the other drivers would file a law suit against you.
Prices and charges from insurance companies are baseless – Insurance companies provide clienteles the complete information about the coverage of the insurance they offer and any changes in the insurance policy is under review for acceptance or rejection by the state department.
Insurance pay for the loan of a stolen car – This is only possible when you purchased GAP insurance but if you happen to have comprehensive insurance, the insurance company will be the one to establish the market price of your car and pay you with that value.
There are a lot more myths that involve auto insurance and it would be a good idea for you never to fall victim for it. Being caught off guard with the myths and beliefs would only spell more disaster for you and your expenses.
