Misconception with Auto insurances
Insurance is a very complex product and is obligatory to have in the majority of the states. There are many misunderstandings in the market that can complicate the situation more. Before purchasing a policy, or even after purchase, it is always good to read each line of coverage to make sure that you understand what you committed to. Also, verify the price for coverage solicited to you is the same as you agreed to pay.
Most common errors that consumers have when interpreting the insurance policies:
Imagine that you have total coverage under my policy- In reality, total coverage does not exist. This is a term that is often used to describe having complete coverage against collisions for your vehicle. Often, the consumers misinterpret the policy assuming they are covered against all types of damages in any situation. For example, just because you have a policy with complete coverage against collisions does not mean that customized parts will be covered on your vehicle. Damages done to glass windows, or rental cars will not covered.
Can I use my coverage for renting an automobile while mine is being fixed at the auto body for mechanical repairs?
If your automobile is at the auto body shop, it is possible for you to rent a car to keep you mobilized. If you think this is covered by your insurance, then think again. Your insurance policy only covers expenses for one rental if you have coverage and if you decided on this special coverage when the policy was bought. In addition, make sure you know what kind of coverage for rental automobiles you are buying because there are daily and maximum limits.
If i buy a bright colored automobile, my insurance will cost more-False. The color of your car makes no difference in the premium cost of your auto insurance. The different insurance companies qualify conductors based on different factors or consideration but never by the color of the automobile. Factors like your driving history, credit record, the year, make, and model of your vehicle and how long have you been with this company are a few principle factors that are taken in order to determine the cost of auto insurance.
If i have things in my vehicle and it is robbed, my automobile insurance will cover it-Think again. Your automobile insurance policy does not cover your personal property within the automobile. Many times, if you have home insurance or rental insurance, you could be covered but never with a standard car insurance policy.
My auto insurance will cover me if I am a food delivery driver– If you are a food delivery driver, you should get coverage as one under employment insurance policy or obtaining a business/commercial policy. If you submit a claim and the insurance company finds out that you make deliveries using your vehicle, not only can you be charged with insurance fraud (for using the car for a distinct purpose differently from what was declared) but also, that company most likely will deny payment for the claim.
My credit score has no effect on my insurance premium-False. The majority of companies use your credit score as a qualification factor which slightly affects your insurance premium. You can ask why your credit score affects the cost of your insurance policy, but there have been varies studies done that show correlation between the probability that someone with bad credit presents more claims through the Insurance Companies. It may seem unfair, but there are other ways available to improve your insurance premium without having to improve your credit rate.
There are hundreds of misconceptions about the insurance market. The best way to protect yourself as a consumer is investigating the company and review your policy before you purchase it. If you currently have a policy, do not hesitate to call your agent or insurance company to ask questions or get better explanations on your coverage.