If you are new to auto insurance, you would have heard a lot of information and whatnot on the policy, coverage, costs, etc. Some of them are half-truths, at best, and can even make you more confused. Not having the right information on the basic concepts of vehicle insurance can lead to claim rejections.
This article debunks some myths about car insurance and helps you make a well-informed purchasing decision.
Myth 1: Your auto insurance will cover whatever happens to your car
Some people think auto insurance covers damages and technical faults of cars too e.g your fan belt cuts, engine knocks, wear and tear due to usage or age of the car. No, auto insurance does not cover this. Not even comprehensive.
Auto insurance only covers accidental damage or loss. So you do need to understand the type of policy you’re getting to protect your vehicle appropriately.
Learn more about what auto insurance covers.
Myth 2: If another person drives your car, their auto insurance will cover the damages in the event of an accident
The truth is an insurance company will only pay for damages to the car registered with them, regardless of who is driving. So if you don’t have car insurance yet, ensure you understand the rules before allowing another person to drive your car.
Myth 3: I am using an old car, so I don’t need auto insurance
The reality is your vehicle needs an insurance plan, whether it is old or new. You may think that the replacement value is too low to justify a comprehensive insurance plan. That may be true but remember that old cars are not immune to theft (because of demand for their parts) and other forms of damage.
Myth 4: Third-party insurance cover is enough if my car is old
First, third-party insurance only covers the damages to a third party and not the damages to your car. Therefore, your car’s age does not matter. The condition of your car, in the event of an accident, is what should be of more importance.
Myth 5: You can’t change the insurance company once you buy one
Most insurance plans are valid for a year or less, and you can choose to renew. You can change the insurer at renewal if perhaps you see a better benefit from another insurer.
Myth 6: I need to take a separate policy if I have a driver
An auto insurance policy doesn’t require you to have a separate auto insurance policy for your driver. However, ensure that the driver has a valid license. If not, your claims won’t be covered if they were driving without a valid driver’s license.
Myth 7: The claiming process is long and difficult
This is not entirely true. For reputable insurance companies like Leadway Assurance, to make a claim; you just need to log on to their website and fill out the claim form. Once submitted, you’ll be contacted by the customer care representative within 24 hours to assist you quickly with further formalities.
Ready to shop for Car insurance?
Now you can differentiate the myths from the facts. If you do not currently have car insurance and are looking to get on the road, now is the best time to purchase one.