There are many misconceptions that many people repeat without verification when purchasing a car insurance policy. Also, most of us simply go for the first choices that we generally encounter. Car insurance is often overlooked and treated as a routine that must be taken regardless of any other accounts. Since there are only a few simple steps in order to purchase auto insurance.
And since the purchase of car insurance is accompanied by a payment of money, then all false beliefs must be verified and confirmed. In this article, we aim to shed light on some of the most common misconceptions about auto insurance so that you don’t fall into the trap of incorrect information.
- It is always better to choose a mandatory insurance policy
Many people tend to believe this, given the assumption that TPL is always less expensive than a comprehensive policy. this is not true. The price of the mandatory insurance policy has increased in some countries, as an increasing number of drivers with high risks choose to cover third-party damages.
- If a friend damages your car, his insurance company will pay!
That may sound like a logical conclusion, but it really is about what the insurance policy says. The insurance policy is marked on the car, not the driver. Therefore, as the owner of the car, regardless of who was driving it, you will be the one who pays for the damages. Unfortunately, if someone else drives your car and gets involved in an accident, you will be the one responsible for the insurance claim. Now you might think twice about letting your friends in the driver’s seat!
- If the car is covered, your luggage in it is covered as well
In the event of damage or theft, many car owners sometimes try to recover the items inside their car through an auto insurance company, because they are not convinced that the document does not include these risks. However, you can choose to cover personal property as an additional coverage with an upcoming car insurance policy to ensure your personal belongings such as laptops are protected.
- The premium I pay depends on the color of the car
There are rumors that some car colors such as red require higher insurance fees. But this is not true at all. The color of the car does not affect the flat premium of your car insurance policy. There are many other factors like vehicle features and driver data that definitely have an effect on the exact price, but the car’s color has nothing to do with it.
- A cheaper car means a lower premium
A car’s value is certainly an important factor in calculating its insurance premiums, but that doesn’t mean that a less expensive car will always be cheaper than insurance compared to a more expensive car. The insurance company takes into account the history of loss and risk factors associated with the vehicle model to be insured. Therefore, a sports car or a huge car with a value of 2000$ may cost higher insurance premiums than a family car or an SUV of 3000$. The main reason for this is that the sports car has a higher record in terms of expected losses.