Anyone looking for car insurance is likely to have been subjected to, or coaxed into believing, a host of car insurance myths that abound in the marketplace. While it is your right, for instance, to look out for cheap car insurance, it is also your responsibility to know the facts and be grounded in the reality before you made your purchase. So, what are these myths and what is the reality?
When there is an accident, use your car insurance: This is arguably the most prevalent myth that many would swear to be true. After all, if you can’t use your Claim
in the event of an accident, what’s the point in having a cover in the first place? However, the fact is that you would be better off paying for any damage that you could handle on your own, rather than staking a claim, for the simple reason that you would Risk
increasing your future Premium
if you exercised your option.
In other words, if the damage is something that you could bear, go for it without disturbing your insurers.
Insurance covers all kinds of usage: How one would wish that were true! However, the real world is for real situations that go by what you stated to be true when you bought car insurance. If your car insurance premium has been going the personal use way, and you got into trouble when using your car or letting your spouse use your car for business purposes, you would, in effect, be voiding your own policy. You can be sure that your Policy
is not going to hold good if you were to use your car beyond your stated intents and purposes.
would cover for all personal effects lost when my car is broken into: This one tends to be a cherished myth for most car owners who may not have gone through the fine print of their policy documents. You can be sure that there will be monetary limits attached to anything that may be lost as part of the unfortunate event. Hence, think twice before you choose to leave your expensive tablet or smart phone in your car, believing fully in the power of your car insurance premium
to work for your oversight.
My excess works only when I’m at fault: Well, this one is not as straight forward as it may seem to be. If you have not been at fault in an accident, you would be entitled to be reimbursed to the tune of the excesses that you are liable for, provided your insurer manages to get the money from the third party or when the insurer of the third party has paid the money to your insurer. Till then, excesses are all yours.