Unveiling Myths: Common Misconceptions about Auto Insurance

Auto insurance as a process seems to be a simple yet lengthy one with ample aspects to be considered. However, many essential elements related to auto insurance need to be understood before you zero in on an insurance plan.

 

The scope of information is so enormous that it sometimes becomes challenging to differentiate between fact and fiction. In fact, this has given rise to many unnecessary myths doing the rounds of the comprehensive insurance world. 

 

These myths lead to great confusion among insurance buyers and drivers, negatively impacting their decision to select a particular auto insurance. Thus, it becomes essential to understand these myths and misconceptions regarding auto insurance in detail.

 

Many relevant platforms, such as Insurance Navy Brokers, offer all the necessary information about affordable auto insurance, insurance claims, insurance premium calculations, etc. However, the need remains to browse these platforms and clear your doubts about these aspects.

 

Clearing Common Misconceptions About Auto Insurance

 

Let us walk through some of the most common myths and misconceptions regarding auto insurance. 

 

It is Always The Driver Who Pays For The Damage 

 

Well, it is not so. You are mistaken if you believe that the person driving your car will be handling the damage. The insurance process always considers the vehicle and not the driver. So if you have lent your car to an acquaintance and, unfortunately, get involved in an accident, your vehicle insurance policy would be applicable. 

 

In some cases, your acquaintance’s policy may be applicable, but only when your policy limits are used up. For example, in some policies, the driver does not matter; no one other than you would be covered when in the driving seat. Thus, it is advisable to understand how the policy works before selecting one.

 

After Accident, The First Priority is To Move the Vehicle To Safety

 

This is not so, as your priority after an accident is to get yourself and your loved ones to a safe place. Though the location and position of your vehicle are essential in making an accident report, there are some steps that you can take if the car is not located in a safe place after the accident. 

 

To make your accident claim, foremost call 9-1-1 to complain about the accident and take photos of the vehicle to make the claim.

 

Car Color is Always Important

 

Many people believe that the color of a car is imperative when it comes to calculating insurance premiums. As per a myth, cars that are red are costly when it comes to insurance premium costs. 

 

However, this is not so. The car color does not affect the premium budget; the model and make of a car influence the premium. Thus, the owners of a red color car do not have to worry about increased premium rates as this is only a myth.

 

An Auto Insurance Policy Gets Locked for a Year

 

This is, again, a myth. Once you buy an auto insurance policy, it does not mean that you cannot replace it within a year. However, you can always cancel and return your present policy if you get a lower rate policy. 

 

However, you may have to spend some cancellation fees, which usually affects the decision of many insurance claims. However, if your policy is about to be renewed, it is advisable to complete the time and then get a new insurance policy.

 

Full-Coverage Insurance Means Coverage for Any Situation

 

No, this is not so, and this is just a myth—full coverage, though a mainly used term in the insurance world, does not necessarily mean complete coverage. However, there may be some clauses for which the insurance policy may not be applied. 

 

Thus, again, it is advisable to get complete knowledge about the events that would be covered under the policy before buying. 

 

Your Credit Score Does Not Affect Your Auto Insurance Rates

 

This is an incorrect belief that your credit score does not influence your insurance rates. Your credit scores and the charged auto insurance rates are highly related. Credit history is also considered an imperative factor for assessing the risk of offering you insurance. 

Users with red marks on their credit history are often considered the wrong choice for offering auto insurance. 

 

Cost of Auto Insurance Increases With Age

 

This is again incorrect as your car insurance rates would only decrease until you reach 65 years. As per studies conducted by insurance companies, drivers who are 17 years and less file more claims as they are more prone to accidents. 

 

On the other hand, drivers who are 25 years get more responsible, and they get into fewer accidents. However, after 65 years, there may be a slight increase in your insurance rates which can be balanced easily with senior driver discounts.

 

Your Personal Auto Insurance Can Cover Your Business Insurance Claims

 

If you are a business owner and have been using your car for business usage, you must discontinue it. Many people believe that their personal insurance policy can also cover their business claims. However, this is not so; many car insurance firms also do not allow this. For example, you are supposed to purchase commercial auto insurance for your vehicles meant for business purposes.

 

Final Words

 

The insurance industry is swarming with different kinds of myths, especially auto insurance. These myths hold the potential to impact many users’ decisions regarding insurance purchases negatively. Thus, experts often advise consulting professionals about clearing these myths when getting auto insurance. Happy insurance!

 

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