People these days are getting most of their valuable things insured. It makes a lot of sense because by getting insurance done you protect the danger of loss. There are many kinds of misunderstandings which people have in their mind regarding the car insurance. We can here see what they are and how they are misunderstood.
- People have a myth that getting a speeding ticket increases the rate of premium for your car insurance. This is not true at all if you have direct car insurance the company will not increase the rate of premium if you do not have any other ticket or claim in the last 3 to 5 years.
- Purchase of other product with card and nonpayment will not impact the car insurance. People who buy products with a credit card and fail to make the payment will have to pay almost 50 % more premium than the ones with good credit score.
- If you slam your car against the loan mower parked in the garage the homeowners policy will cover it. The homeowners insurance will not cover the car for such incidents. To get your car protected against this kind of incident, you must have comprehensive car insurance.
- If you crack up your friend’s car and tell him that you have car insurance which covers the accidents’ loss. In such a scenario first the amount of deductible which is there in the friend’s car insurance will be used Your car insurance will be only utilized after your friend’s car insurance deductible has been exhausted.
- If you are riding your bicycle and get hit by a car your car insurance will not be involved. This is not true if you get hurt severely or die when you are hit by a car while you are riding a cycle or walking on the road your car insurance will be involved. If the insurance policy of the person who hits you does not cover you your car insurance policy will surely cover for the loss.