Because car insurance is such a disliked purchase in our lives, there are many misconceptions regarding how it functions and what it is all about. Because that is the case, many people make mistakes while purchasing car insurance, and needless to say we would all rather avoid that issue. For that reason, it is best if we clear up those myths and misconceptions as quickly as possible.
Insurance Always Follows the Driver
Many people think that if they lend their car to their friend, and their friend get in an accident, that the friend will be the one whose insurance foots the bill. As unfortunate as it is, this just isn’t true. No matter who is driving, if your vehicle has a bad day, it’s your insurance that must pay for the damages. Insurance is specific to the vehicle not the person driving said vehicle.
Auto Insurance will cover for Personal Items Stolen from the Car
You would think auto insurance would cover everything about the vehicle, including the items within the vehicle. As nice as this would be, it’s not the case. Personal items are not covered under car insurance if they are stolen from the vehicle. You’ll have to rely on renter’s or homeowner’s insurance for that one.
Towing and Rental Cars following an Accident
Wouldn’t it be nice if a car warranty company offered something like this? Unfortunately they don’t even if you are under a full coverage plan. That said, these types of services can usually be added onto your insurance plan, but for an additional and usually hefty cost. They aren’t actually part of the insurance plan to begin with, meaning you don’t get it with any standard package that you are probably using.
Full Coverage Warranty Automatically Covers the Cost of Mechanical Breakdowns
In a perfect world, this would be the case. But for the most part warranties only cover damage from accidents or natural causes. Unless you have a very specific vehicle warranty or you’re purchased that extra protection, few car warranties will have something like this available for you.
Aesthetics affect the Rates of Car Insurance
For some reason, many people believe the color of their car can affect the rates of their car insurance, for some reason thinking that one color is more expensive to insure than the others. This is definitely not true. Car insurance companies base their rates off of many things, but color is not one of them. White, black, orange or fuchsia, the rate of your car depends on model, your age, and the popularity of the car among car thieves.
When it boils down to it there are several myths out there about car insurance that people worry about, but not a one of them is true. Know your facts before you get too involved with buying car insurance, because the last thing you would want to do is base a decision off of a myth you didn’t even know was false.