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:
·
The Matter of Your Car Colour: 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.
·
Old
Car’s Never Get Stolen: 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.
·
My
Car Insurance Company Will Cover in All Cases: 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 car insurance might
not come to rescue.
·
Credit
Scores Have No Affect Over Insurance Rates: 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.
·
Insurance
Company Has Power To Nullify Policy Anytime: 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.
·
If
Someone Else Borrowed My Car, He/She will Be Responsible For Accidents: 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.
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