Top 6 Myths About Car Insurance

Now every body wants their own car. This has become the latest trend these days. As soon as one buy the car, it is very important for the owner to get the best insurance plan get done. This helps him in case of any accident or any damage due to any ways. Car insurance makes the owner a little relaxed.

Many people are unaware about the real picture of the car insurance. They have many misconceptions which needs to be taken care of. These myths are mainly due to ignorance and lack of knowledge.

Here are the common myths among the people and the corresponding correct explanation them. These are –

  1. People think that if you are using your own car for the business purpose and unfortunately, you meet with an accident, then, all the losses will be borne by the employer insurance. This is incorrect. It is you who will have to compensate for all the losses. Your employer will take care of the mileage only but all other losses need to be compensated by you itself.
  2. It is common myth that if you lend your car to anybody say a friend and if he / she meets with an accident, then your friend’s insurance will take care of all the losses. But this is again a wrong conception. You should be very careful in lending your car to anybody. If the car is registered at your name, any accident to that car will be compensated under the policy borne by you.
  3. More danger to new cars for getting stolen. This is another common more prevailing among the people. But it has been observed that old cars are more prone to get stolen. This has even been verified by the survey. This may be due to the reason that new cars have more advanced locking and alarm systems. So thieves have difficulty in stealing this.
  4. Insurance rates of car depends on the color of car. This is very wrong conception among the people. Car insurance rates are entirely depended on the make and model of the car, performance, year of manufacturing etc. Color of the car has nothing to do with the car insurance rates.
  5. Insurance rates are affected by the parking tickets. This is wrong. Unpaid parking fines may lead to suspension of license which in turn can affect the insurance rates of the car but parking tickets are of no concern in case of insurance premium.
  6. Whims of the providers affect the car insurance rates. This is not correct. Many people think in the same way. But let me clear this. Every car insurance company has to submit their car insurance rates to the agencies of the government for approval. After approval only they can offer this to the buyers.

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Tim Webbar on April 25th 2011 in Automobile Insurance

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