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6 of the Most Common Car Insurance Myths
6 of the Most Common Car Insurance Myths
Car insurance and car shopping are inextricably linked. Having automobile insurance is required by law in order to drive on the road. Car insurance shopping can be as difficult as buying a car; it necessitates a significant amount of research. When shopping for vehicle insurance, it's critical to comprehend the terms and conditions as well as the elements that influence your rate and coverage.

Car insurance and car shopping are inextricably linked. Having automobile insurance is required by law in order to drive on the road. Car insurance shopping can be as difficult as buying a car; it necessitates a significant amount of research. When shopping for vehicle insurance, it's critical to comprehend the terms and conditions as well as the elements that influence your rate and coverage. Being well-informed about everything while purchasing insurance allows you to make smarter decisions and avoid the myths!

Knowing the difference between reality and fiction is important since misleading information might lead you to make the wrong decision, which can be difficult when filing a car insurance claim. Read on to avoid the most prevalent auto insurance myths and make informed choices when looking for coverage.

Some well-known myths and their lesser-known FACTS are as follows:

Myth: Your insurance premium is determined by the colour of your car.
Fact: Car colour and insurance premiums are unrelated. Don't allow insurance premiums keep you from getting your favourite colour. A popular urban legend claims that if you buy a car in a specific colour, such as red, your auto insurance premium would be greater than others! When it comes to the colour of the car, insurers aren't picky.
However, when determining the premium for your vehicle insurance, they are more concerned with the model and make of your automobile, the engine's cubic capacity, and the car's body style.

Myth: Getting the bare minimum of coverage saves you money.
Fact: It might, but not in the long run.When you first buy insurance, going with the bare minimum of coverage required by law may appear to be the most cost-effective option. However, while you may be happy to save a little money on your premiums, you could end up spending a lot more if you get into an accident.
Accidents can happen at any time, and if you only have the bare minimum of coverage, you'll have to pay more out of pocket for unintentional losses, which will almost certainly be costly. As a result, obtaining simply the mandated coverage is not a good idea. Rather, go for a comprehensive policy that covers everything.

Myth: If you delay policy renewal or switch insurers, you lose your No Claim Bonus (NCB).
Fact: NCB is attached to your car and is not lost in such cases.

If you have not made any claims in the previous year, you will receive an NCB discount on your insurance premiums. Your NCB is not taken away from you if you move insurers or if you tend to pay your insurance premiums late. You have a 90-day grace period from the policy's expiration date to renew your vehicle insurance coverage and carry forward your NCB.

Myth: Your auto insurance will cover anything.
It's a fact that you should read the fine print.While comprehensive car insurance is usually advised, each policy has its unique set of benefits and restrictions. You can always purchase add-ons to your comprehensive coverage for an additional cost to make your auto insurance more comprehensive. These add-ons will cover a variety of problems.

Myth: If a friend borrows your car and is involved in an accident, his insurance will cover the costs.
Fact: No, car and insurance are inextricably linked. When you lend your car to someone, you're also lending him your car insurance. As a result, if he causes an accident, you will be held accountable for the losses and injuries he causes.

Myth: If you have an accident, your insurance premiums will increase.
Fact: This occurs as a result of the loss of NCB. The No Claim Bonus (NCB) is forfeited as soon as you file a claim on your vehicle insurance policy after an accident. As a result, the premiums rise, which is shown at the time of renewal of the auto insurance policy.
Many of these legends have no logical foundation. As a result, when you get a car insurance coverage, be sure you understand everything it includes and excludes. Knowing how vehicle insurance works can help you avoid falling victim to such fallacies.