Car Insurance Myths Explained!
Updated: Dec 6, 2021
How much of your car insurance policy do you understand? If you hadn’t read the policy itself but signed up for it anyway, then you are much like everyone else. Most car owners have not read their policy before they signed up for it. Some of them trust their insurance advisor about the details of the policy that they no longer go through it until they get in a car accident and they need to know if the insurance covers it or not.
Here are some of the most popular car insurance myths that every car owner should understand more:
· You can only shop for a new car insurance policy when the old one has expired.
In truth, buying new car insurance when the old one has expired might be a bit too late. Considering the paperwork that needs to be done to process the insurance coverage might take a few days to process, which means you might be driving your car around town without insurance. This is putting your car and yourself at risk. The best time to look for new car insurance is about three months before the old one expires. If you don’t have plans of renewing the old insurance coverage, make sure the new one is ready when the old one’s coverage ends.
· Buying insurance direct from the company instead of talking to an insurance advisor is much cheaper.
While insurance companies offer a slightly different rate for car owners who directly make the purchase from them instead of going through an insurance agent, this doesn’t necessarily mean savings from your end. Most insurance companies use such money for more marketing and branding their insurance products. However, going through an insurance advisor might mean more understanding on your end about the product you are buying. With more knowledge of what you are buying, you get to enjoy more of what it has to offer.
· If your friend who borrowed your car gets in an accident, the insurance company will not cover it.
Unless stipulated in the insurance policy, insurance companies are required to cover accidents when the vehicle insured is involved. Comprehensive and collision coverage are just two of the essential components of a car insurance policy, regardless of who is driving the car at the time of the accident.
Unlocking the truths in these car insurance myths makes buying car insurance so much more comfortable. When you know what you are looking for, finding it won’t be that hard.