Always compare car insurance and car insurance quotes each year. Never renew your insurance based on what you think you have. You should understand exactly what the policy, a contract, says. A look at some of the myths associated to car insurance.
This article looks at some of the common myths related to car insurance, that are just that, myths. This is by no means the limit of the common myths that exist. Many people make decisions related to the type of car they buy, and what insurance coverage they have, based on these myths. Make sure you know exactly what you are buying by communicating with your insurer, and reading your policy details.
Car Insurance Myths
1. The Color of My Car will Influence The Cost of My Insurance
Strangely enough, there are studies that have shown that white cars are more often in a crash, in comparison with the percentage of white cars on the road. However, this research has not been enough to influence the insurance companies to change the way they calculate your car coverage. Insurance is calculated by a number of methods, and that can change. It is always a good idea to compare your current costs, to that of other providers, before you renew your policy. Price can be greatly reduced with tailored use calculations.
2. Insurance Companies Decide What They Want to Charge
This is not the case. Insurance companies are under a great amount of regulation by government. Moreover, with market competition so fierce, they are constantly competing for our business. Another reason why you should always get fresh car insurance quotes. You could be paying a lot less.
3. My Car Is Insured, Even if My Friend Crashes My Car
This is not necessarily the case. Some coverage policies will only cover you if you are driving, and some may cover your car if someone else is driving. You should check this with your provider. You should thoroughly check this for yourself because of the high number of varying situations, different policies, and different exceptions.
4. The Accident Was Not My Fault, So I will Keep My No-claim Bonus
You should not assume this without consulting your policy. There are some policies that will allow you to keep your no-claim bonus if the accident is not your fault. Other policies may not allow you to keep your bonus, no matter what the case is.
5. I Have Insurance, and I Do Drive Recklessly, It Does Not Matter I Am Covered
If you are in the wrong, or you have broken laws, you might not be covered by your insurance. You need to consider the issue of ‘due care’. If you leave your car with the windows open, and your car is stolen, you might find your claim is rejected.
You are always only covered under the conditions of what is explicitly written in your policy. You should understand it. If you don’t, and you continue to pay for it, you might find that you are wasting your money. It is important to make sure you have the right coverage, for your situation and use. Prices and quality are changing all the time, and so you should look at the competition to see whether you can get a better deal. If you happen to be looking for Australian car insurance I’ve found that a car insurance comparison at www.captaincompare.com.au is one of the most reliable comparison sites for the best car insurance deals.
