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3 Car Insurance Myths Debunked

13 July 2022

Sherri Ramos

If you have mentioned to your friends or family that you are considering getting car insurance, you have probably received a lot of different advice. You have been provided with a list of facts, dos and don'ts, and the best and worst insurance policies. Advice is good, but without the facts, it can be misleading. Today, you debunk myths on car insurance to help you purchase the right car insurance.

You Don't Need to Buy Insurance for an Old or Second-Hand Car 

Although most people believe that getting car insurance for an old vehicle is a waste, the law requires you to protect your car by buying auto insurance. Therefore, you need insurance for a new, second-hand, and old car.

While you might feel like an old car has less value and doesn't justify getting a comprehensive car insurance cover, insurance is essential. Besides being a legal requirement, old cars are prone to theft due to the high demand for spare parts. Older cars are easier to steal since they don't use state-of-the-art lock technology.

Getting a Full-Coverage Will Insure Everything 

When buying an insurance policy, it's important to ask the agent everything. Full coverage refers to a combined policy that blends comprehensive and collision coverage. While it covers different hazards, they don't insure everything.

Comprehensive and collision policies are optional and protect against different damages, including accidents caused by you. However, the policy will differ from one insurer to another, and it's essential to ask the agent what the policy covers.

Insurance Only Helps If You Get Into An Accident Without Being at Fault

Nobody anticipates causing an accident or getting involved in one. So, car insurance acts as a preventive measure should an accident happen. Most people believe the insurance only helps when you aren't at fault. However, motor insurance keeps you covered, depending on the policy.

For example, a comprehensive policy covers you if there are any mechanical faults or floods. However, to be covered, the accident needs to occur due to other reasons than driving under the influence. The vehicle should also have gotten into an accident when used for its intended purpose. For example, you cannot make a claim if you got into an accident using your business car for personal use.

Know the Facts  

Wrong information on car insurance could be misleading and cost you a lot in the long run. Your life and car are valuable to your insurer. So, ensure you read through the policy document before signing it. It will help you understand the insurance, which will make it easy to put forward a claim in the event of an accident. 

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