There are several myths regarding auto insurance. It is better to bust these myths so that you are not caught in a bind when buying auto insurance.
1. The color of the car has nothing to do with the auto insurance premium amount. The insurance premium depends on the model of the car, the size of the engine, the driver’s safety record, and the age of the car.
2. If you lend the car to somebody who causes an accident, you bear the cost of damages and not him, since the car is in your name.
3. Taking comprehensive coverage does not cover car rental in case the car is undergoing repairs. You need to take collision coverage too to protect the car against hail, or acts of vandalism.
4. Taking a no-fault cover does not absolve you of paying damages if you cause an accident.
5. Taking out an auto insurance insurance policy does not cover a new vehicle. You need to inform the insurer within four days of buying a car to provide coverage for it under the same or a new policy.
6. The insurance premium amount is not fixed. It depends on your driving record, area of residence, the types of cover you want under the policy and the number of miles you drive in a year among other things.
7. Age does determine the insurance rate, as does your marital status. Senior citizens get a discount on their insurance premium, as do married men or women, as they are considered safer drivers.
8. You need separate insurance if using the car for business use. Personal insurance does not provide coverage if you use the car for business purposes.
9. You need auto insurance legally, even if have never caused an accident. Heavy fines or jail time can result if you are caught driving without car insurance.
10. Minor non – moving traffic violations like an expired inspection/safety inspection sticker or parking violations do not hike up the insurance premium unless you are a repeat offender.
Moreover, auto insurance does not protect the contents in the car against theft. These will come under homeowner’s insurance. Hence, breaking these myths will keep you better informed and forearmed against misconceptions before taking auto insurance.