Some Myths About Car Insurance Cleared :
No fault insurance means that I am not at any fault
“No fault” car insurance means that the car insurance company will play irrespective of the person that caused damage to the vehicle.
Car insurance is affected by the colour of the car that I choose
Car insurance quotes and car insurance rates are impacted by the make, model and mileage of the car. It’s also affected by your driving record and the credit score that you may have.
If a friend damages my car, his or her insurance company will pay for the damages
That’s not true, if the car is in your name and you have paid car insurance, then your insurance company will pay for the claims. This will happen even if you weren’t present at the time of the accident. This means your car is your responsibility. If the car has an accident, your insurance premium will go up the following year.
The state government sets the insurance rates
This is partially true. The insurance department of each and every state lays down the insurance policies and the minimum insurance amount that should be taken. Zip codes, marital status, driving record affect the amount of car insurance that you can get and afford.
Males under 25 pay more insurance premium
This is a fact. Insurance companies deem that males under 25 are more likely to be involved in accidents than the females. Typically teenagers and senior citizens pay more for car insurance premium, as they are likely to be involved in more accidents than other age groups.
My credit score won’t affect the car insurance cover that I will take
Your credit scores impact all the financial decisions that you would make, especially for insurance.
This means that when you take insurance coverage, or wish to renew your insurance coverage, credit scores will be taken into consideration. When you purchase or sell cars, and apply for loans, your credit score will be of prime importance.
I am still covered for theft and vandalism without comprehensive coverage
If you want to fully insure your car against all possible problems, then you would need to purchase collision coverage as well as comprehensive coverage. This will protect your car from fire, thefts, animal accidents, vandalism and much more.
My personal car insurance will cover both for personal use and business use
Check the car insurance cover if you are fully covered for both personal and business use of the car.
I don’t need car insurance, since I have never been involved in an accident
If you have been lucky till now, you may not be so lucky in the future. Car insurance pays for damages, medical bills and other lawsuits. In 47 out of 50 states, it’s mandatory to have car insurance, failing which you could pay severe penalties.