When buying car insurance, it is important that you are not misled by the myths people widely have about car insurance. Here is a checklist which will help you get your facts right.
1. Colour of the car has a bearing on the Premium
of car insurance
There are people who believe that the colour of their car has a bearing on the car insurance premium. It is perceived that if the color of the car is red, the premium will be higher than normal. However, this is not true. In no way does the color of the car influences your insurance premium.
The premium of your car insurance is in fact dependent on several other important aspects like the age of your car, your past track record of accidents as determined by your history of Claim
filings, the make, model and the engine size of your car.
2. In case a third person is driving your car and he meets with an accident, he will be covered under his own policy
This is not true. You need to be sure that you entrust your car in safe hands only. If the person driving your car meets with an Accident
any claim that you file will be recorded and paid under your own insurance Policy
and not the policy owned by the driver. Every car is uniquely covered by an insurance policy and not the driver.
3. I am a good driver I don’t need to own comprehensive car insurance
A lot many people are very confident about their driving skills and feel that paying for a Comprehensive insurance
cover is waste of money. But this is no good reason to not to buy a comprehensive cover. A comprehensive cover protects you from other liabilities apart from accident. It would take care of any loss or damage to your car due to theft or a natural/man-made calamity. Besides, it is a myth that good drivers don’t meet with an accident. An accident can even happen even if there is no fault of the driver.
4. You can buy private car insurance and still expect to be covered if you use your car for business
Private car insurance will provide you cover only if you are using it for your personal use. However, if the vehicle is being used for a business like taxi services, you will need to buy a passenger/goods carrying vehicle insurance.
5. My belongings in the car are as well covered under the car insurance
If you have a laptop or a mobile lying in the car and the same is stolen it is not going to be covered under you car insurance policy.
6. My Credit score does not affect my car insurance premium
Insurance companies believe that there is good correlation between claim filing history and credit score. Those with a good credit score are less likely to file for a claim. Hence, some insurance companies may offer you a discount if you have a good credit score.
7. I already have car insurance and so I don’t have to buy one for my new car
Your insurance cover on your old car will not cover the damages caused to your new car in an accident. So, you do need to buy a separate cover.