4 Common Insurance Myths That Could Cost You
Car insurance is required by almost all states; it protects the insured from a minor to severe car crash. Car insurance can be a very valuable asset but is riddled with false information, or myths. These myths can cost you a pretty penny if your not aware of them. Listed below are the top 5 myths that you will need to know and how to protect yourself from them.
1. Color Of Vehicle
Many people tend to believe that the color of your car will effect the premium of your car insurance. This isn’t true. It doesn’t matter if you have a red, white, or black car. So why the misconception about the different colors of cars? It all started with sporty or fast cars. They tend to use specific colors, but it wasn’t the colors that were affecting the premium. The car is what will determine what and how much you will pay.
2. My Car Insurance Covers Everything I Might Drive
This myth can be extremely costly the owner of the vehicle in state of a car accident. If you are not on the car insurance, then you are not covered. The person that owns the car will be at fault. Take this for example. If you borrow your girlfriends car and get into an accident, if you are not insured with her insurance for that car she is at fault. Your insurance doesn’t transfer from vehicle to vehicle unless it is a registered vehicle with your insurer!
3. Comprehensive Coverage Will Cover It All
Comprehensive coverage is extremely valuable and expensive. It will usually cover your accident, liability, your medical bills, and any type of damage your car might sustain. However comprehensive coverage will not cover everything. Such as theft, natural damage (hail, snow, and ice). Comprehensive plans very at every insurance so before you make that purchase see what you are being covered for.
4. Where You Live Doesn’t Makes A Difference
All care insurance companies calculate the risk that bring to them and that is what they base your premium off of. So lets say you live in a place that has a high crime rate of theft and car vandalism, but your mother lives in a safe neighbor with little to no crime. You would be charge a higher premium because something is more likely to happen to your car. While your mother would probably be charged much less due to low crime.
There are many more myths that aren’t explained in this article. So I caution you to always do your research before purchasing car insurance of any type.
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