Nowadays car insurance is like a mandatory option for all the vehicle

users which helps them to cover up the losses that they might incur if their car

gets damaged or stolen.

When it comes to claim for an insurance, many users face lots of issues of myths and misconceptions involved in it .

Color of the car affects car insurance rates. Especially red

cars are more expensive…

Myth 1:

Color of your car has nothing to do with

the rates… Red, blue, black or any color

makes no difference at all.

Truth is:

Full coverage includes rental and towing coverage.

Myth 2:

Rental and towing coverage are to be paid by individual riders which means

additional costs..

Truth is :

Driving history is the only factor that determines the insurance rates.

Myth 3:

Beside the driving history there are some other factors like age ,

type of car, location etc. which decide the insurance rate.

Truth is:

Newer cars are more expensive to insure.

Myth 4 :

New Car

The insurance rate depends on the year and model of the car.

Truth is :

Myth 5:

Your credit has no effect on your

insurance rates.

The insurance is a measure of how well you manage your

financial affairs.

Truth is:

Comprehensive insurance covers mechanical problems.

Myth 6:

Comprehensive insurance includes theft, vandalism, hail, fire & flood but trouble

with your mechanical problems is on you if that is not the result of a car

accident..

Truth is:

Myth 7:

If some one else other than the owner is driving the car, their auto insurance will

cover them in case of any accident.

Truth is:

Insurance policy covering the vehicle is considered as the primary insurance that means the owner’s insurance company

must pay for the damages..

Personal auto insurance covers both personal and business use of your car

Myth 8:

Truth is:

If you are self employed and use your vehicle for business purposes, personal

auto insurance may not protect you.

Car insurance rates will be higher for a smoker.

Myth 9:

Car insurance rates will not get affected by your smoking habits.

Truth is:

Use of rental reimbursement coverage to rent a car for my vacation

Myth 10:

Unless your insured car is in the shop as the result of an accident, you won’t be able to use

rental reimbursement to rent a car for vacation.

Truth is:

Myth 11:

Buying insurance online saves money.

Online insurance policy can make you to pay a high cost if you don’t have the proper

coverage. Additionally in an online purchase there are chances that you may loss the major

offer or discounts.

Truth is:

No-fault insurance refers to an accident that is not the policy-holder’s fault.

Myth 12:

No-fault insurance simply means that your own insurance company pays for your injury

no matter who is at fault .

Truth is:

So, before going to buy

or claim for a policy it is very

essential for a policy holder to be

aware of these myths.

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