The truth behind the 3 oldest car insurance myths

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By: NathanielCopeland
on 16th Jun,2012

A life insurance policy acts as a safety net for the family in case the worst happens.
The truth behind the 3 oldest car insurance myths


Insurance is one of the more essential things that people just can't do without. A life insurance policy acts as a safety net for the family in case the worst happens. A homeowners policy is designed to protect the investment you made in your dream home and take care of all the big repair bills over the years without leaving you bankrupt.

Although most people tend to buy such insurance as a rule of thumb, they are still optional. You don't need a life insurance policy if you don't want to be insured and purchasing a homeowners policy is at the discretion of the homeowner and sometimes up to the conditions laid down by the mortgage lender.

Car insurance on the other hand is an absolute and basic necessity for every driver and car owner. Every state in this country requires you, as a driver, to carry some sort of proof of financial responsibility. The most widely accepted proof of financial security among drivers is auto insurance. As such, insuring your car is a legal requirement.

Over the years, there have been many rumors generated around the purchase of car insurance. Insurance agents have propagated half truths to sell expensive policies and consumers have developed personal superstitions about what could possibly get them the best quotes. The human nature is known to build myths around things it cannot fully comprehend and the case remains the same when it comes to buying auto insurance. Here is a list of popular auto insurance myths and the truth behind them.

The price of your vehicle has very little to do with the cost of insuring it

It may be true in general that expensive sports cars and luxury vehicles attract high insurance cost but it is not because of the price tag. Such cars simply bear a higher potential risk of being broken into, stolen or vandalized. Technically speaking, insurance companies treat every vehicle the same way because they are fundamentally the same. What insurers really take into consideration is your own history as a vehicle owner and a driver. Insurers especially give weightage to your loss history when it comes to calculating your premium. Estimated cost of repairing the vehicle is also a part of the premium calculation.

Insurers do not consider gender as a factor while assessing your monthly premium

It is a statistical fact that female drivers are more prone to get into car accidents than men. Over the years, this bit of statistic has given birth to the myth that women pay a higher price for insuring their vehicles. This is absolutely untrue. Insurance companies don't take gender into consideration when they calculate premium rates. What they consider is the insured's driving history, irrespective of gender. If you keep your driving record clean and report your annual mileage honestly, you will always qualify for better rates.

The insurance company will not pay your for property stolen from of your vehicle

Here is where most people tend to get confused when making a claim. You need to remember one thing very clearly. All items of personal effect like cell phones and laptops which you may be carrying in your car is not by any means covered under your auto insurance policy. Rather, they are covered by your homeowners policy (that is if you have listed them on it) and you will need to make a separate claim with your home's insurer. Keep such expensive stuff out of your car, especially when you are leaving it in a parking lot for 8 hours while you are in office. If you have to carry them with you, make sure you conceal them well and lock your car properly before leaving.

In conclusion, if you have shopped and compared your quotes and gotten over the myths related to car insurance, there is nothing which can stop you from availing good rates.

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