The insurance industry has a list of most misunderstood things about car insurance. These car insurance myths have been some of the most common questions that most people have about direct car insurance, either purchasing or reviewing their car insurance coverage. It is better to find out now before you have a claim.
Myth 1: You just got your first speeding ticket; the insurance rates are presumed to go way up.
Reality: In case, this has been your first ticket, your rates probably would not change. Comprehensive car insurance would give you a pass in case you do not have any other claims or tickets in the past three to five years.
Myth 2: The new Plasma TV you have bought last year would not affect your Car Insurance.
Reality: In case, you did not pay the credit card that you charged it on, then it might affect. Almost all kinds of insurance companies have been using some kind of credit scoring method while determining whether you would qualify for insurance and what you would be paying. There could be around 50 percent difference in rates for a person having excellent credit to someone with poor credit.
Myth 3: You just slammed the car door into your lawnmower parked in the garage. Your home owner’s policy would cover it.
Reality: Your homeowner’s coverage will have nothing to do with covering your car damage. The only method your car would be covered is in case you have comprehensive coverage for your car. In addition, it would be only after you pay you deductible.
Myth 4: You just cracked up your friend’s car. You assure him not to worry, as your insurance would cover it.
Reality: Your insurance would cover it, but only after your friends car policy pays first. Therefore, let us presume your friend has a collision deductible of $500 worth and you have half its collision deductible. You would have to cater your friend with the $500 bill for his deductible, as his insurance company would become primary. It would mean that your insurance would pay only after your friend’s policy limits have been exhausted. Therefore, in such a scenario, your deductible does not matter, as it would be based on your friends.
Myth 5: In case, you are riding your bicycle and get hit by a car, your car insurance would not be involved.
Reality: In case, you get hurt or killed while riding your bike or walking on the street, you would be astonished to learn that you might be covered by your direct car insurance policy. In case, the person driving the car did not have any insurance or lacked enough insurance to cover your injuries, your uninsured or underinsured coverage would pay for your claim.
Myth 6: Someone broke into your car and stole all your personal belongings from it. Your car insurance would pay for it.
Reality: Your car insurance does not cover your personal belongings present or left inside the car. You need to file a claim with your Homeowners or Renters insurance policy in order to be compensated for lost items. The charter ping an car insurance would only pay for items that have been attached to the vehicle.