Automotive

Motor insurance myths you should ignore

Cars are expensive assets. Purchasing motor insurance is a good decision to ensure they are covered under any unforeseen circumstances—but be wise when choosing them! Here are some myths that you should know about before purchasing any policy.

  1. Myth: There is no harm in going for the cheapest policy
    As with most types of insurance policies, the coverage you will be able to receive under a car insurance plan usually varies with the cost. Less comprehensive plans, such as Third Party Only insurance, tend to be cheaper purely because they cover the cost of damage to vehicles in a restricted number of scenarios. Comprehensive car insurance, on the other hand, tends to be the most expensive because it covers the most number of scenarios. Most auto loan providers will recommend that you take up this plan for this reason.

Car insurance policies are not created equal, thus if you want to ensure total coverage for your car and its passengers, it is best not to use price as a factor in your decision-making. After all, can you really put a price on protection?

  1. Myth: My insurance only covers damage in the event of accidents
    Most of you would know that car insurance can cover damage to your vehicle and even a third party vehicle in the event of a road accident, but what happens when damage occurs as a result of other mishaps? You’ll be glad to know that most car insurers are looking out for you in this respect.

Apart from accidents, car insurance also covers losses caused by situations out of your control. This includes natural calamities and Acts of God such as fire, theft, falling trees and flood-related damages.

Some policies even cover malicious damage to your vehicle caused by unknown persons, so even if your shiny new car does get keyed, you’ll be able to restore it to its original condition without burning a hole in your wallet.

  1. Myth: I can enjoy coverage even when driving someone else’s car
    So your friend just got a swanky ride and you’re excited to give it a spin. You can certainly take the wheel, but if you happen to get into a scrape, don’t expect to be able to claim for damages under your car insurance policy.

The protection offered by a car insurance plan is often tied not just to the policyholder but also to a particular vehicle. This means that in order to enjoy full protection, you must be registered as an authorised driver for that particular vehicle under the insurance policy.

Some providers may offer an option to cover unregistered drivers – however, conditions vary according to policy wording, so it’s best to check with your provider for a full range of alternatives.

  1. Myth: Car insurance covers items stolen from inside my car
    There’s a good reason why we are constantly reminded not to leave any valuables in an unattended car. Car insurance may cover damage to your vehicle, but it does not enable you to claim for losses arising from personal property stolen from your vehicle. Items such as laptops and mobile phones typically have to be insured separately under a personal property insurance plan in order to be fully covered. It’s thus better to play on the safe side when travelling with special possessions.

source by MSIG

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Categories: Automotive, Finance, General

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