Shifting through some frequently asked questions about car insurance.
Car insurance, a necessity for every driver, is often accompanied by misconceptions and misinformation. We’ll be debunking some common car insurance myths.
Myth 1: You Only Need Minimum Coverage
It's a common belief that purchasing only the minimum required coverage is sufficient to safeguard yourself on the road. However, this notion can be misleading. While minimum coverage might suit your budget, it might not offer adequate protection in case of accidents.
Minimum coverage typically includes liability insurance, which covers damages to other people and property if you're at fault in an accident. But it doesn't cover your own vehicle repairs or medical expenses. In serious accidents, medical bills and property damage can quickly exceed the limits of minimum coverage, leaving you financially vulnerable.
Myth 2: Red Cars Are More Expensive to Insure
The colour of your car has no impact on your insurance premium, despite the persistent myth that red cars are more expensive to insure. Your premium is determined by factors like your driving history, vehicle make and model, location, and coverage options.
Myth 3: Your Credit Score Doesn't Affect Your Premium
Contrary to popular belief, your credit score can indeed impact your car insurance premium. Many insurers consider credit-based insurance scores when determining rates. Individuals with higher credit scores are often perceived as less risky and might receive lower premiums compared to those with lower scores.
Myth 4: Personal Car Insurance Covers Business Use
If you use your personal vehicle for business purposes, you might assume that your personal car insurance policy has you covered. However, personal car insurance usually excludes coverage for commercial use of your vehicle. If you're involved in an accident while conducting business activities, you might not be covered.
Myth 5: Your Insurance Covers Stolen or Vandalised Belongings
It's a common misconception that car insurance covers stolen or vandalised personal belongings left inside your vehicle. Personal property is typically not covered by your car insurance policy. Instead, you'd need a separate policy to protect your belongings.
Myth 6: The Insurance of the Car Owner Covers All Drivers
Borrowing a friend's car? Don't assume that their insurance policy automatically extends to cover you. Insurance often follows the car, not the driver. So, if you're involved in an accident while driving someone else's vehicle, their insurance might not provide the coverage you expect.
Myth 7: Your Premium Will Skyrocket After Any Accident
While accidents can impact your premium, not every minor incident will lead to a dramatic increase. Insurers consider various factors when determining premium changes, including the extent of the accident and your driving history. A minor fender bender might not have as significant an impact on your premium as a more serious collision.
It's crucial to base your car insurance decisions on accurate information rather than relying on myths. Understanding your coverage and the factors that influence your premium can help you to make informed choices that adequately protect you and your assets on the road.
We know that one size does not fit all. That's why we have created car insurance that puts you in the driver's seat. Take control of your car insurance with dotsure.co.za's Name Your Price™.
