What Are The Car Insurance Myths That You Need To Know
A myth is a widely accepted belief or idea that is false. People could have been made to believe it in many different ways such as exaggeration of accounts about a particular subject, ignorance, and deception. In car insurance, the story is not any different and there are many theories that people believe to be true but they are false. Here are some myths in the car industry that many people have for a long time believed to be true.
Insurer will not pay in the event your car is destroyed by floods or fallen tree branches
A fallen tree branch hit your car and your car is damage due to flood. Car insurance will compensate for such accidents under own damage. The cause of the accident might not be the common type of accident that you had sought cover for and some of the car insurance companies might exclude it but most of them will cover such risk. If your car falls victim to such accident, you will be compensated. Therefore. you need to seek the right car insurance companies against such accidents.
Insurer will pay if somebody else was driving your car
Most of the car insurance companies will refuse to honour your insurance claim if they realize that it’s another person who was driving your car at the time of the accident and he/she is not named under the policy for High Performance car. The case is made worse if the person happens to be a minor or without a driving license.
In case of a total loss, the insurance company will let you keep the remains
A total loss is a case where in the event of an accident, the car is completely destroyed and cannot be repaired. In this case, the insurance company compensates you fully. However, you don’t keep any remains of the car but rather the insurance takes whatever had remained. So please don’t think that you can keep the goods parts of the car for you to sell later as spare parts in case of an accident.
You will be compensated twice if you are insured by two insurance companies
Please don’t fall for this myth. If you insure your car against an accident from two car insurance companies, you will be paid by both but they will cost-share the loss. So by insuring twice, you will pay full premiums but you will be paid the actual value in the event of an accident.
The No claims discount doesn't work
The no claims discount is real and it applies in the sense that you get a reduction in the cost of your car insurance if you don't make a claim. So drive safe and observe traffic rules because if you don't claim for five years, for instance, you will have five years of no claim discount applied to the basic cost of your car insurance.
