Insurance is complicated enough. Don’t let the flood of misinformation drown out the facts and create more chaos. Since misunderstandings can be costly, here are the most common car insurance myths debunked.
Myth: Red cars are the most expensive to insure
Fact: Red colour will not cost you more green. Around 25 percent of drivers believe that the colour of their car is a factor in determining their insurance rate, especially if the car is red. But the belief that red cars pay higher is truly a myth.
They might ask you the year, make, model, body type, engine size and age of your vehicle. The colour may be important to you as your choice but does not matter to the car insurance company.
Myth: Thieves prefer to steal new cars
Fact: It’s the other way around. Thieves prefer old cars! The reason old cars are in target because they prefer old. Old is gold, the saying goes right. There are very few old cars and there is a strong market for used parts that may come from stolen vehicles.
Myth: My Auto Insurance will cover me if my car is stolen, vandalized or damaged from hail or fire.
Fact: The fact is that unless you have comprehensive coverage, you are not covered for any of these things. If you want to claim insurance for hail or fire, you need to buy both collision and comprehensive coverage to protect your vehicle from any kind of damage.
Myth: If my car is totaled, my car insurance will pay off what I owe on my loan or lease.
Fact: When your car is totaled, your auto insurance policy does not promise to pay off what you owe. Auto Insurance will pay you the actual cash value of your car, minus your deductible. You are still responsible for any amount outstanding on the loan or car lease.
There is only way to cover up the difference, you can purchase gap insurance.
Myth: My auto insurance company will pay for a rental car if my car is stolen or damaged in an accident.
Fact: The fact is that even if you have comprehensive and collision coverage, it may not include a rental car. Rental car reimbursement is not automatically included in any car insurance policy, but you can add it at an affordable cost if you wish to.
Myth: Red cars are the most expensive to insure
Fact: Red colour will not cost you more green. Around 25 percent of drivers believe that the colour of their car is a factor in determining their insurance rate, especially if the car is red. But the belief that red cars pay higher is truly a myth.
They might ask you the year, make, model, body type, engine size and age of your vehicle. The colour may be important to you as your choice but does not matter to the car insurance company.
Myth: Thieves prefer to steal new cars
Fact: It’s the other way around. Thieves prefer old cars! The reason old cars are in target because they prefer old. Old is gold, the saying goes right. There are very few old cars and there is a strong market for used parts that may come from stolen vehicles.
Myth: My Auto Insurance will cover me if my car is stolen, vandalized or damaged from hail or fire.
Fact: The fact is that unless you have comprehensive coverage, you are not covered for any of these things. If you want to claim insurance for hail or fire, you need to buy both collision and comprehensive coverage to protect your vehicle from any kind of damage.
Myth: If my car is totaled, my car insurance will pay off what I owe on my loan or lease.
Fact: When your car is totaled, your auto insurance policy does not promise to pay off what you owe. Auto Insurance will pay you the actual cash value of your car, minus your deductible. You are still responsible for any amount outstanding on the loan or car lease.
There is only way to cover up the difference, you can purchase gap insurance.
Myth: My auto insurance company will pay for a rental car if my car is stolen or damaged in an accident.
Fact: The fact is that even if you have comprehensive and collision coverage, it may not include a rental car. Rental car reimbursement is not automatically included in any car insurance policy, but you can add it at an affordable cost if you wish to.
