Buying a car has to go hand-in-hand with buying insurance. Every car owner must have insurance to be able to drive their vehicle. However, buying car insurance can sometimes be complicated. It requires thorough research to be well-informed about the decision. Understanding terms and conditions and other factors that impact the premium and cover is crucial. Once you know everything, it will be easier to make a good choice and help avoid common misconceptions. Know the difference between fiction and facts to avoid making the wrong decision. We will help you by listing several myths surrounding car insurance and the truth to help you make wise decisions and avoid pitfalls when shopping for car insurance.
Myth 1. Your Policy Covers Everything
There is a spreading misconception among misinformed people that a car insurance policy pays for everything. The fact is that insurance companies cover differently. Therefore, when buying your car insurance in Hialeah, FL, it is crucial to read the fine print. While you may go for comprehensive coverage, understand that every insurance policy has exclusions and inclusions. So, once you buy the extended cover, consider other add-ons to exhaust the insurance.
Myth 2. Your Car’s Color Determines Insurance Cost
There is no connection between the car’s color and insurance premiums. Don’t fail to buy a car with your favorite color because you fear the premiums will increase. However, you may need to consider other things like car models since it is a determining factor when calculating the premium. You can gather car insurance quotes from different companies and choose the best.
Myth 3. Choosing Minimum Cover Saves Money
Yes, you can save money by going for minimum coverage. However, it is not ideal in the long run. It also means you must pay out of pocket for areas not covered by insurance. While you save a little more every month, you could spend thousands of dollars on repairs when you get into an accident. Accidents are unpredictable, and having minimum car insurance coverage means you will pay for the expenses, which can be more expensive than paying monthly premiums.
Myth 4. You Lose Your No Claim Bonus if You Switch Insurers
The no-claim bonus (NCB) is the bonus you get if you have not made claims in the past. The compensation does not disappear once you change your insurer or delay renewing the policy. You are given a grace period of 90 days to pay the policy, after which you can restore the policy and continue enjoying your NCB.
Myth 5. Your Premium Increases if You Get into an Accident
Your premium goes up after you make a car insurance claim because you lose the NCB benefit. As mentioned, NCB is the bonus you get if you have not made any car insurance claims against your company. So, once you file the claim, you lose your NCB, increasing your premium when renewing your coverage. So, speaking with Del Toro Insurance is advisable to understand the process and how to go about it once you make the claim. You can also take advantage of other factors that may help reduce your auto insurance costs.
Myth 6. Your Friend’s Insurance Will Pay for Damages Should They Get into an Accident While Driving Your Car
No, car insurance companies are different. Therefore, when a friend borrows your car, you also lend them your car insurance. That means you will be liable for the damages and injuries incurred if they are involved in an accident.
Closing Words
These myths do not have a foundation. Therefore, when shopping for car insurance, it is crucial to be well-informed. Ensure you understand the offers, terms, and conditions. Knowing more about how car insurance works will help you navigate away from such myths and make a better choice.