Like it or not, there are a lot of myths, pitfalls and half-truths regarding auto insurance that can cost you a pretty penny. Why not start 2017 without some costly misconceptions you may have? After all, we all want to pay as less as possible for insurance while maximizing our coverage. You may “know” some things that may be keeping you from doing just that. So let’s dispel some of these myths, shall we?
- “I have complete auto insurance so I can drive other people’s cars.”
Not true. Although there are some fully comprehensive auto policies that provide you this facility, even those are not without certain conditions. You should check each and every sentence and word of your car insurance policy. Especially if you think you have some sort of all encompassing policy. It just might keep you from being liable for the damage to someone else’s car.
- “I can list myself as my child’s car’s main driver to save money”
While it might lower the cost of insurance if you name yourself as the main driver on your kid’s first car, don’t expect this arrangement to work smoothly in case something goes wrong. An insurer will think its strange that you have a 15-year-old hatchback worth $1000 alongside a modern SUV perhaps. It may also be questioned why your kid is driving your car at 1 am.
- “There’s no need to declare my driving conviction”
On the contrary, you have to. Just because the number of driving convictions for speeding has gone up doesn’t mean you don’t need to share this information with your insurer. You may think that you’ll save a good amount of money by not declaring the conviction. While you might save that cash, the insurer can outright refuse your claim when its discovered you sat on this important piece of information.
- “I can use my car for work without paying more”
This will require more investigation on your part. A standard policy usually covers usage that includes traveling to and from work. However, if you use your personal car for work in a way that’s considered additional to the standard use as described in your policy, you have to notify the insurer. This is because the additional risk needs to be taken into account and your adjusted accordingly.
- “I can say my car is in a garage while it's not”
Don’t tell your insurer that your car is parked safely in a garage every night when its not. You will face a lot of problem if someone breaks into your car while it was parked on a street, and not in the safety of a garage like you mentioned to the insurer. It may keep you from getting your claim. Remember, playing down the risk of your car in front of your insurer is not a good idea. It might save you a few bucks when getting the auto policy, but can very well fire back in a big way.
So there you go - You’re now ready to start driving into 2017 without these auto insurance misconceptions!