Top Ten Car Insurance Myths and Misconceptions

Check the top ten car insurance myths and misconceptions and get quotes for free from top car insurance companies. Here’s the list:

  1. “Full Coverage” includes rental and towing coverage.  The name is misleading – and it makes you assume that full coverage is exactly that, a policy that covers everything in the event of damage or an accident. Rental and towing coverage are individual riders that are added on separately and apply an additional cost to your policy.
  2. New cars are always more expensive to ensure. This is not always the case and you must do some research and get some quotes. Some new cars may actually be cheap to insure, due to high safety rating, eco-friendly fuel and cheap parts to replace.
  3. You will be reimbursed for the car’s value. If the worst happens, and you need to make a claim for total loss, your insurer will payout your car’s current market value. Insurers use independent guides which give an accurate value for the vehicle by taking into account everything from age and mileage to condition.
  4. “No – fault insurance” refers to an accident that is not the policy-holder’s fault. This simply means that your own insurance company pays for your injury-related bills, regardless of who is at fault.
  5. A car will be declared “a total loss” if it cannot be driven after an accident.  A Total Loss is declared only when the repair costs exceed a certain threshold of the car’s present value. The threshold generally falls between 50% and 70%.
  6. My insurance will cover me if my car is stolen or vandalized.  This is not possible unless you have comprehensive coverage, you are not covered. If you want to fully protect your vehicle be sure to have collision AND comprehensive coverage.
  7. No Claims. You don’t have to be ‘at fault’ to lose your No Claims discount. If your car is hit in a car park and the guilty party drives off, it’s not your fault, but if your insurer can’t recover their outlay you’ll lose your no claims bonus.
  8. Contents Claims Motorists tend to believe that their car’s contents are generously covered against theft. However, in reality most policies have a very low cover limit if at all.
  9. Your insurance covers you for any accident that you cause. If you crashed and were convicted of drink-driving, your insurer would be likely to turn down your claim.
  10. Cancellation Costs. Don’t expect to get a full refund if you cancel your car insurance. Just like any other financial product you’ll have to cover set-up costs and cancellation fees.

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