You might be surprised at how many car insurance myths are out there. Worse yet, youve probably fallen for at least one of them. Check these out.
1. Thieves dont want old cars.
If youre betting that your vehicle wont be stolen, dont put your money on it. All too often, those with older cars figure they dont need theft insurance on their vehicle. Its not worth skipping this coverage, though, particularly if you live in an area where car thieves are active. While high end cars may be in hot demand at chop shops, car thieves know that older cars are easier to steal, so they are not safe.
2. Your insurance covers whats inside the car, too.
Unfortunately, this isnt true in most cases. Dont wait until you lose something valuable to learn the truth about this myth, though. Your personal objects within the car may be covered by your homeowners insurance. Double check this before you carry your grandmothers heirloom jewels in the glove compartment.
3. It doesnt matter what happens to my car if Im insured.
You might be surprised to find out what is not covered by your insurance policy. If it doesnt specifically state that you are covered, then you can assume that things like floods, hail, fire and vandalism are not the responsibility of the insurer. In many cases, you will need to buy specific coverage for these possibilities. Not everyone needs all types of coverage, but its a good idea to evaluate just how at risk your vehicle is. If you live in an area where tornadoes or hurricanes hit frequently, for example, you will want to have insurance for this.
4. Your friend is covered if he drives your car.
Not necessarily. Insurance is for the vehicle, but you have to specify the people who will be driving the car, so thats where it gets tricky. Letting someone drive the car when you arent covered for other drivers can cause all manner of problems. You need specific coverage for this and in the meantime, if your friend crashes the vehicle, youll be liable.
5. Red cars have higher premiums.
This is one of those myths that just keeps going and going. Many people believe that the color of your vehicle matters when it comes to insurance, but it actually doesnt. While the type of car you drive will make a difference, color isnt even checked by the company before providing a policy.
6. My insurance covers rental vehicles, too.
Are you sure? This is something to double check before you turn down that insurance at the rental office. Some policies do cover this, but not all, so make sure.
7. One Ticket and Your Premiums Skyrocket
Fortunately, this is rarely true. If you do get a speeding ticket, it will count against you, but it generally takes two to make a difference in how much you pay. There are usually several factors involved in the price hike, so go ahead and ask your agent what happened.
Purchasing car insurance should be much easier if you arent worrying about these common falsehoods. Youll be able to focus on the real deal and get your car insured for less.
Sam Jones the author, is often asked how to get cheap car insurance. He suggests the uSwitch.com online price comparison facility where you can obtain multiple quotes all arranged in order of price with only one form fill
This article is copyright free.