Car Insurance Myths smashed

    Car insurance myths  Even at the best of times, when we want insurance, insurance policies can be hard or laymen to fully understand. It’s not that insurance companies do on purpose. But due to the sometimes complex legal requirements, it is unavoidable

    Although insurance companies want you to know what a policy covers, their lawyers insist on wording which is unquestionable in legal terms. As most of us are not lawyers, though, that means much of the legal mumbo jumbo is alien to us.

    Myths – Ask Questions

    Most insurance companies will provide an easy to understand breakdown of the cover. Even so, it is always advisable to ask questions on anything if you are not completely sure. Of course, though, the time to ask is when you first take out the policy. So do not wait until you have to submit a claim as otherwise, you may be disappointed.

    As the wording and terms of insurance policies are so difficult to understand, many of us would gladly do

    Myths About Car Insurance

    without insurance. Unfortunately, if we drive, it is something we cannot avoid having.

    Probably the most popular type of insurance is car insurance. It, is, therefore, car insurance which most of us will have had at least some experience with but even so, most of us still do not fully understand the breadth of the insurance we have purchased.

    Myths – Simplify

    Here we simplify the types of insurance as much as possible. Third party insurance is the minimum required by law. As such it is the cheapest. This kind of insurance though will pay you nothing as it only covers any third parties involved. The insurance company pays them compensation for any injuries oar damage they may suffer due to an accident.

    If an accident is the fault of the other driver, though, you become their insurance’s third party and so you can claim against their insurance. Third party fire and theft is similar to other third party insurance. The difference is that it includes additional coverage in case of fire or other natural causes, such as flooding. In that case, it will pay you for necessary repairs needed to your car.

    Myths – Comprehensive

    Comprehensive insurance is the most expensive but just how expensive will depend on exactly what you want in the policy. Comprehensive insurance will, though, in the case of an accident, pay for your injuries and damages as well as those to any third party.

    Although each different insurance company’s policies differ from another company’s, usually liability insurance will cover the driver regardless of which vehicle they may be driving at the time of an accident, while comprehensive insurance covers the car, regardless of whom is driving it.

    Of course, as with everything in the world of insurance, there are exceptions such as with liability insurance, you will only get cover if the car you are driving meets certain criteria or that with comprehensive insurance, the driver is driving your car with your permission.

    Myths – Private Purposes

    A myth people believe is that you cannot use a car for private purposes if covered by business use insurance. There are three types of use in car insurance terms: professional, business or private as this gives the insurance company an idea as to the car’s usage. Clearly, the more usage, the more likelihood there is of an accident.

    Myths – Professional Use

    Professional use is the type of coverage a professional, like a doctor, should take out. Such use indicates that their vehicle may go on emergency calls or home visits, a requirement of their profession. A car used for business purposes will be in almost constant use carrying out the owner’s operational needs. But the owner may also use it for their private use.

    Insuring for private use means just that and so, although it may be used to take the driver to their place of work, it shouldn’t be used to carry out business on a regular basis. It is important to get the correct type of coverage for your required use as  you might face claim rejection otherwise.

    Myths – Expensive Cars

    It is also not always true that a more expensive car will cost more to insure. Although in most cases it probably will cost more as the value is one of the considerations when looking for a policy. But there are other factors which could reduce the cost of the insurance.

    Insurance for a car may be more expensive if the model of car is very popular and therefore more liable to theft. If however, substantial anti-theft devices are fitted to the car, it becomes less susceptible to theft, and so the insurance payments may be reduced substantially.

    The fitment of any anti-theft device is one of the things that an inspector of cars, on behalf of the insurance companies, will look for. The inspector will also look the car over in order to assess its value for insurance purposes.

    Myths – Assessed Value

    Most insurance companies will allow the option to have your car assessed at market value or retail value. Market value is the price you may hope to sell it for privately. But retail value is the price you would probably have to pay for a replacement. As the latter is usually higher than the former, insuring your car for its retail value will cost you more.

    Many people think that all excess charges when making a claim are the same but this is not true. All insurance companies charge an excess that has to be paid by the insured when he claims. However, the amounts or percentages differ from one company to another. Some companies may even reduce the cost of your insurance if you agree to pay a higher excess fee..

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