Understanding the jargons of insurance policy is no joke. There are a number of cars insurance myths that your insurer might make you believe while determining your premium rates. Here, we have listed few auto insurance myths that you should know:
· Red might be the new black in automotive world, but it is no reason to drive premium rates up. Car insurers should be and are keener in acknowledging the brand, model, manufacturing year, body style, and engine configuration. What counts most, the driver’s behaviour? Violation of traffic rules is one of the significant points that might affect your new car’s insurance premium rates. You might think a lot about your car’s colour, but insurance companies have no interest in that.
· Ever heard the term “old is gold” and this applies more severely in case of well-maintained cars with sound engines. Nobody would care for car’s age when its spare parts are sold in black market. So, all those people sitting assured about their used cars get alert and insure your vehicle now.
· Collision and comprehensive coverage are optional with auto insurance policies; however, each coverage comes with its own set of conditions. It is one of the biggest car insurance myths that companies will cover any and everything that happens to your car with or without reason. If your windshield gets smashed by tree’s branch or some freak scratches your car with pointed objects or breaks your glasses at night, your might not come to rescue.
· Another common car insurance comparison myth that needs to be debunked. Many insurers consider applicant’s credit history as top priority for offering insurance. Your credit score is the biggest indication of how well you are in managing your finances. There are companies that consider this point even for changing or renewing insurance policies.
· Unless your insurance company has more than enough reasons for doing this, they have no arbitrary power to do so; Cancellation grounds may include non-payment of premium, fraud, too many incidents, deliberate accidents for getting cover, etc.
· One of the biggest auto insurance myths that need to be debunked. No, whenever your car meets accident, you will be accountable for the incident irrespective of who is driving the car.