- My insurance will go up if I have an accident or get a ticket.
That’s one of the most common vehicle insurance myths. The truth is that is not necessarily the case. There are a number of insurance companies that offer accident forgiveness. Also, while some auto insurance companies will increase insurance rates based on a moving violation, there are many companies that won’t until there’s a second ticket. Some top 10 reasons to why you need an insurance, read on. Serious tickets, like DWI or hit-and-run accidents, will generally immediately trigger an increase, at the very least.
- My insurance will pay for damage due to vandalism or theft.
Again, the answer is maybe. Drivers who carry bare-minimum policies – liability coverage only – will not have coverage in those situations. Liability coverage pays out only on claims for damage to the other driver or vehicle. Comprehensive vehicle insurance coverage pays for non-accident damage and is sometimes declined in an attempt to shave insurance costs.
- New vehicles are more attractive to thieves.
That’s not true. In fact, 2007 statistics by the National Insurance Crime Bureau showed that only one 2007 model was among the top ten vehicles stolen during the year. However, the myth at least highlights an important point – insurance companies do rely on statistics for thefts and insurance claims to rate vehicles and drivers. That information is available, and a smart driver interested in two different vehicles checks with the insurance company to see which is less expensive to insure.
- All parts of a car insurance policy are compulsory.
Drivers have nearly total control over the coverage purchased for a particular vehicle. Their are advantages and disadvantages of car insurance, you have to cautious as to what are your plans and budget capacity is. Most states do require a minimum amount of liability insurance, but other than that, most elements of an auto insurance policy can be altered or removed by a driver. That’s a key fact, because understanding how to adjust deductibles or liability coverage to lower insurance rates can help a driver get a cheaper policy.
- My insurer will pay off my loan if my vehicle is totaled.
This is another of the most common vehicle insurance myths. This is only true if a driver adds gap insurance to the policy. Gap insurance is specifically designed to pay the “gap” between what a normal policy covers and what you owe on the vehicle. In situations without gap insurance, a driver will only receive the actual cash value of the vehicle – minus the deductible, of course. Always check the internet for the best quotes available so as to have a brief information about the insurance.
- Items stolen during a car theft are covered.
Yet another vehicle insurance myth. While the answer is usually yes, the coverage is not provided by your auto insurance. Comprehensive coverage only pays for damage caused by something other than an accident, such as a flood, fire or theft. The auto insurance will pay for damage to portions of the car, such as the radio, but not for clothes, CDs, phones, and other items that may be stolen from a vehicle. That is normally covered by homeowner’s insurance.
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