FiVE CAR INSURANCE MYTHS

Car insurance can seem complicated to you, especially when there are several misconceptions about it. There are many common misconceptions among vehicle owners that should be mentioned. Here are the five car insurance myths and the truth about car insurance given below:

1. Bright Colours Cars are More Expensive to Insure:

We mistakenly believed that car insurance costs are equal to every car, but there is a misconception that cars with bright colors are much higher than with standard body colors. However, the color can indirectly affect the final price of the insurance policy. The fact is that many bright colors tend to be high from more expensive versions of car insurance.

Since the market value of the car plays a vital role in calculating the cost of insurance; as a result, the bright color also has an indirect impact on car insurance.

2.​ ​The Insurance Company Reduces the Maximum Coverage Amount After an Accident:

Half of the vehicle owners know that after insurance under the Casco policy, the maximum amount of coverage is not reduced by the amount of damage. We all know that each insurance company sets a maximum payment limit for every car at the time of insurance. Typically, this maximum amount is based on the market value of a new or used vehicle.

Every month, the amount is reduced by the car's natural depreciation according to the Casco contract. The non-aggregate type of insurance under the Casco policy is much more profitable for the vehicle owner.

3. Car Insurance is not Preferable for Young Driver:

Insurance premiums are generally higher for younger drivers. Usually, insurance companies have different rates for car insurance, especially for young drivers. However, other factors, such as age, are also considered when calculating the insurance premium. Generally, a driver having a good driving record can benefit from a more favorable premium.

4. Your Insurance Premiums Enhance If You Are Involved in the Accident:

If the accident happens through your negligence, then it may affect your premium. Remember, if you find that your insurance premium is going up, it may have nothing to do with an accident. Meanwhile, insurance rates are periodically adjusted to consider inflation, the type and number of claims, accident statistics for people driving the same car as you, and more.

5. If your friend borrows your car and wrecks it, their insurance policy will compensate you:

Remember that your insurance is part of yourself. When you lend your car, you also lend your insurance. So think about the impact an accident could have if the person you lend your car to has an accident. In the event of a collision, depending on your contract's coverage, it is generally your insurer who will compensate you for the damage caused.

Wrapping up:

The above are five car insurance myths that every car owner needs to understand. However, the insurance company develops a compromise relationship with the broker that fulfill the insurance obligations at the time of mishaps.