Myths and misconceptions always find a place in the human head. Car insurance is no exception to this rule. Most of us are reluctant to purchase a car insurance policy because of such half-truths. Since confusion can cost you dearly, myths and wrongful information about these policies need to be eradicated. We clear some of these for you today.
Myth :- Color of Car Affects Premium Rate
Reality :- The color of the car has nothing to do with the premium rate. Insurance companies are not bothered about the color of car being red, black or silver. They are interested in knowing the make, model, engine details and manufacturing year of the vehicle. So, even if you have a black colored Honda City, you need to pay the same premium as decided for any Honda City car, but if you own a Honda City VX iDTEC (a higher), you surely have to pay more for the car insurance cover.
Myth :- New or Fancy Cars are Targeted by Thieves
Reality :- It is the one of the most common misconception stuck in the heads of numerous people. Thieves don’t follow any such rules and they are not necessarily attracted to new cars. Even an old Hyundai Accent might prove more profitable in comparison to a newly launched Alto 800. The proportion of old cars getting stolen is much more because of costlier parts or their unavailability in the market. Hence insurance is necessary for your car, be it a new luxury vehicle or an old family vehicle.
Myth :- Full Coverage Will Get Me a New Car If I Crash
Reality :- People have a general misconception in their head about full coverage imagining that the insurance company would provide a new car after the crash of the old one. Rather it would just pay the repairing cost to the auto shop. Full coverage is a combination of collision insurance and comprehensive cover that includes accidental and non-accidental damage of vehicle and liability.
Myth :- Personal Belongings Lost During Wrecking of Car are Insured Under Car Insurance
Reality :- If you have a habit of leaving your smart phone or laptop in your car relying on your insurance policy then please check the documents again and run through the terms and conditions. Although there are some monetary limits set by insurer on the things lost during any unfortunate event, still car insurance premium cannot work for your oversight. You are advised to think twice before assuming any such facts.
Myth :- Car Insurance Policy Can Come to End Anytime
Reality :- This is just another misconception piling in numerous heads, whereas the fact is that car insurance has a proper expiry time which is stated on the policy document. It is valid for 1 year. In case of fraud or incomplete premium payment, the policy might get terminated in the middle of a term.
Revealing the reality behind such myths can save you good amount of cash and guide you with proper selection of a policy. We must always remember that insurance of any kind can only get us back to the state where we were but not improve it. Myths are blessed with a magnetic attraction of engaging more people but one needs a reality check for a better decision making.