5 Car Insurance Myths That Are Costing You a Fortune

Updated on March 13, 2021 | by Joseph Williams

Car Insurance Myths Might Cost you a Fortune

Car insurance is something every driver should have. But there is often a lot of paperwork involved, and some myths regarding this service have surfaced over the years. Naturally, people try to make everything about car insurance as understandable as possible, but believing things like that without checking them first can end up costing you money.

As a matter of fact, there are some very widespread ideas many people believe that is simply not true for car insurances. Here are the five most common car insurance myths that might cost you a fortune.

1. All Companies Have Similar Rates

This is probably the most common cause for people paying too much for their car insurance. Do some research and you will quickly see that there is a variety of packages and services to choose from, and they all come with some very different price tags. Getting car insurance should not be a decision that is made hastily. Just like with pretty much all other industries, companies are always trying to attract new clients with better deals. Use that!

2. Car Insurance Covers Everything

Another very common misconception. While car insurance will indeed cover you if you’ve been in an accident, you have to ask yourself what happens if your car gets stolen or a tree falls on it, or it gets damaged in a similarly unexpected way. Well, your car insurance can but doesn’t necessarily have to protect you from that, so make sure you are well informed on the so-called “acts of God” that are covered by your policy. Legal experts, such as Optimal Solicitors, can help you find the right package and make a successful claim.

3. I’m Always Covered When Using My Car

This one may surprise you, but it’s true – even if you’re using your car you may not be covered by insurance. This is often the case if a person is using their car for business purposes, maybe driving for services such as Uber, for example. In those situation business policies for your car is what you need, and many people often forget about this. There’s an advantage to this, though, as self-employed people can write this insurance off when filing taxes.

4. You Only Need the Minimum Amount of Insurance

While it is true that most countries and states have some sort of minimum coverage for auto liability you need to possess, getting just that can be a very risky move. Simply put, getting the minimum coverage means you are protected from as few problems as possible, which means that should something happen that is not covered by the minimum package, you will have to pay for it yourself. Be smart, don’t rush, and pick the right package.

5. If Another Person Drives Your Car, Their Insurance Covers it

This depends on what the laws in your country say. In many cases, it is the insurance covering the vehicle that has caused the accident that has to pay for the damages. Therefore, regardless of who is driving your car, your insurance may still be required to cover it. Do your best to inform yourself on this if you’re regularly allowing other people to use your car.

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