A lot of myths or fallacies are associated with car insurance. Most of the people don’t have any knowledge about them which compelled them to take a wrong route while buying car insurance.
Go through the following to know and free from your confusion about them,Car Insurance is unnecessary Still you don’t have any car or motor vehicle accident means you are profoundly fortunate.
But it doesn’t guarantee that, unfortunately, you don’t face such a mishap and you don’t have to cover yourself. It can happen anytime. Covering the possible future losses is the purpose of a car insurance policy. It gives you a lot of space to feel secure. In various countries buying some form
of car insurance cover, if you own or drive a car, is mandatory.
Take liability and cover the damage of others, done by you, some form of third party insurance is compulsory. Color of the vehicle don’t have any affect on the premium Many, so-called, insurance experts deny the affects of vehicles color on the premiums of car insurance. For some insurance companies it may be true. But most of the good companies take color of the vehicle in count while quantifying the risk. For instance, red cars get more tickets and traffic violations, blue and darker cars are more likely to get accidents especially in dawn and dusk and white cars, as easier to re-spray, have a higher chance of being stolen. All of these affect the premiums of car insurance.
Drivers Insurance Cover The Cars
A Driver’s insurance policy never ever covers the car he is driving. If you fall an accident and make damage to your car, your policy will only cover your physical damages not the damages of your car. If your friend or any one except you makes any damage to the car, his or her car insurance will not cover your car. For ‘Nominated Driver’ or for ‘Multiple Drivers’ are the policies most of the companies offer. If you are the nominated driver in your policy and your friend make damage to the car, your claim will surely be rejected. However, multiple drivers’ policy will only cover your spouse. Apart from you two, any one makes any damage your claim will be rejected and your no-claim bonus, if there is one, will also not be paid.
Credit Rating Doesn’t Affect Insurance Premiums
You may think how your credit rating could influence your chances of crashing your car or having it stolen. It surely doesn’t still it will affect your policy. It may speak for the possibility of you missing payments, cancelling your policy or even committing insurance fraud. Bad credit also indicates that you may declare bankrupt at any time. Nevertheless, financial reasons, though not motor risk related reasons, may also affect insurance quotes.
Insurance Premiums Are Set By Government
It is a myth without a slight touch of truth; insurance premiums are set by government. The government regulates the industry and assigns and ombudsman to handle disputes between policy holders and insurance companies. Insurance premiums are influenced by make, model, value of your car and other factors like your claims history and credit score.
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