Car insurance is essential for all drivers and is often seen as an obstacle to getting on the road, but the myths, misconceptions and fear-mongering about car insurance are simply not necessary. To dispel these myths, here are some facts that can help you make sense of the situation and make sure you don’t pay out for something you don’t need.
One common misconception about car insurance is that you pay more for insurance if you drive a flashy or powerful car. This is just not true, as a flashy car can actually be cheaper to insure. Many insurers will have a differential in age and value-based premiums and a still-valuable vehicle is more likely to attract a lower premium.
Another myth is that if you buy accidental cover, you are safe from being sued. Not true! Accidental cover will not protect you if you can be proven to be at fault for an accident. Third-party liability, on the other hand, will pay compensation to any third party injured by your vehicle who sues you.
Many people mistakenly believe that if the damage to their car is less than their deductible, they will receive no money from their insurance. This is true for minor damage, but for serious damage to your car, you will be compensated even if it is less than your deductible.
A long-standing legend is that car insurance is a depreciating asset. While it’s true that the amount you get reimbursed for an accident may not cover the full cost of repair, the value of your insurance policy remains the same, just like any other asset. So you can benefit from increasing premiums and the cost savings that result.
Those who have been driving for many years think that their car insurance will keep on going up, regardless of their claim history or driving record. Again, this is a myth and insurance companies take both of these factors into account when setting premiums.
Finally, you may have heard that teenagers have to pay higher car insurance premiums. While young people are more expensive to insure because they are more likely to be involved in an accident, they can benefit from better premiums by maintaining a good driving record. Good grades can also lead to lower premiums.
Having debunked some of the common myths about car insurance, it’s time to put it into practice. It’s important to make sure that your insurance pays out for damages in an accident, and that’s something you can control, depending on what type of cover you have. By understanding and comparing the various types of policies, you can make sure you only pay for what you need.
Now that you’ve learned the basics of how car insurance works, it’s time to look into the details. Firstly, it’s important to understand what is covered by the policy and the amount of protection that is provided. When comparing different policies, it’s important to look at the overall cost of the cover and the specific benefits each policy offers. In addition, look out for any hidden fees or additional costs that may be charged.
Secondly, don’t forget to consider the type of coverage that is included in a policy. Consider things such as damage to your car, liability in case of an accident, and the cost of towing and storage of your vehicle. You should also consider the cost of rental car coverage, as this is often an add-on to an existing policy. Thirdly, make sure you understand the terms of each policy, as this can affect how much you get paid out if an accident occurs.
Thirdly, you can save money on your car insurance by opting for a higher deductible. By doing so, you can reduce the monthly premiums, while also being prepared to pay a small amount for certain repairs or replacements. It’s important to remember, however, that if you make a claim, you will need to pay the deductible as well.
Fourthly, when looking to get the best value for your car insurance, don’t just focus on the cost alone. The quality of coverage, customer service, and the reputation of the insurance provider are equally important. To make an informed choice, research online reviews and ratings to get an accurate view of the quality of service being offered.
Finally, when looking for car insurance, you may be able to benefit from discounts if you meet certain criteria. For example, some companies offer discounts for drivers with good grades, a clean driving record, or for drivers that bundle their coverage with another policy. So be sure to ask each company about the available discounts to see if you can save some money on your policy.
These are some of the important facts about car insurance that can help you make a better decision when shopping for a policy. By understanding the reality of car insurance, you can make sure you only pay for the coverage you need and that you get the best value for your money.