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The top myths about auto insurance
The complexities and lack of clarity about the methods of calculating premiums and including certain exceptions in car insurance policies have left people guessing and this has resulted in some myths that float in the air. No one knows for sure as to what can qualify for an insurance claim and what might be debarred from claiming. Myths are often considered to be true and this leads to misunderstandings.
This article attempts to break some myths and throw light on facts and actual conditions that are applicable for car insurance. This should help car owners to know their limits and avoid being on the wrong side of the law that can even result in rendering car insurance policies invalid. Let us see what the truth really is.
Specific colors of car can make insurance expensive
The color of cars does not matter to insurance companies in working out the cost of insurance. The type of vehicle is the main concern of insurance companies as it relates to the safety record of the category and how attractive it is to thieves. The cost of repairs that the type of car might entail is also what is looked into. History of accidents, total distance driven in a year, driving preferences – during the day or night and the preferred driving routes are all considered to work out the premium but never the appearance of vehicles.
Accidents from others’ fault would exempt the payment of excess
In the event of any claim the insured person has to pay a certain sum of money that is known as excess. This condition is built into the agreement that a car owner enters with the insurance company and it has to be honored regardless whether the accident has happened for the fault of someone else or even if the car is stolen.
Prior driving conviction disqualifies the driver from getting auto insurance
Click4Warranty says car insurance companies have factored the risks of driving conviction into the insurance products that they offer and does not disqualify a person who has been convicted for some reasons of breaking the road rules from obtaining car insurance. However, the record of driving conviction would make the policy costlier except for speeding conviction that does not entail any extra cost of insurance. Even if you have been convicted for driving any other types of vehicles likes van or motorbike it is better to disclose it at the time of taking the insurance so that you are not taken by surprise at the time of settlement of claims.
No claim bonus is affected by windscreen claims
Claims pertaining to windscreens only do not impact the no claim bonus status of the policy in any way. Only the insurer has to pay his or her share of excess as per agreement.
The insurance company takes the liability of loan repayment when the car is written off
This is not true as the written off value is lower than the outstanding loan. To make the insurance company repay the loan you have to get cover of GAP insurance.
Harper Harrison is a reporter for The Hear UP. Harper got an internship at the NPR and worked as a reporter and producer. harper has also worked as a reporter for the Medium. Harper covers health and science for The Hear UP.