Auto insurance is no joke. It saves you loads of money and plays an integral part in keeping your finances in check. But on the flip side, bad insurance will cost you a lot of money and give you practically nothing in return. Considering this is such an integral part of buying a car, it comes as no surprise that many common myths are disguised as auto insurance tips. Here are the most common myths about buying auto insurance busted.
1. Red cars cost more
A common auto insurance myth is that red cars cost more to insure. This myth is completely false and there is absolutely no data to back this claim up. Insurance companies look at the model, year, miles, etc. to make the decision. The color of the car plays no role in deciding the amount. So, feel free to choose any color that your heart desires.
2. The insurance covers anything and everything
Among myths about auto insurance tips, another that is pure falsehood is the belief that insurance covers everything that happens to the car. Although some premiums cover a very comprehensive set of damages, always remember that some things may not be covered. Be sure to read through exactly what your insurance covers and what it doesn’t, to avoid any unpleasant surprises at the end.
3. Changing your insurer forfeits your previous NCB (no claim bonuses)
NCBs amount to a significant amount of money. Something many don’t know is that switching insurers does not forfeit your previously collected NCB. It technically follows you wherever you go, meaning you are free to switch insurers without any fear of losing out on your accumulated NCB.
4. Valuables inside the car are covered by the auto insurance
One of the most common auto insurance tips that is a myth is that everything inside your car will be covered by auto insurance. Auto insurance doesn’t cover valuables inside the car, it covers the car and the car alone. Stolen items like laptops, bags, etc. will not be covered by your auto insurance.
5. No-fault insurance takes all blame off you
Contrary to how the name might sound, no-fault insurance doesn’t mean you’re let off the hook if the fault is with you. No-fault insurance lets all parties involved in the accident avail insurance payout for medical treatment immediately. The insurers decide who pays whom. If you are clearly at fault, the claim will come back to you and this will affect your premium.
6. If I’m not at fault, my premium won’t get affected
Unfortunately, your premium will increase whether you’re at fault or not. So drive safe, and follow the traffic rules at all times. Clean driving will help you in more ways than just a low premium. Look out for bad drivers because at the end of the day it will cost you, regardless of who is at fault.
These common auto insurance tips that are pure myths can save you a lot of money if you pay close attention. Read about auto insurance before getting one because that will make it easier to find the best deal for you and your precious car.