Car insurance is something every car owner must have, but it can also be confusing and overwhelming. There are many myths surrounding car insurance including misunderstandings and incorrect assumptions.
Red cars are more expensive to insure
Car insurance is expensive because red cars cost more in insurance than other colors. Insurance determines rates based on several factors, including your driving experience, where you live, and the kind of vehicle that you own. Cars are more expensive and cost more to insure than cheaper ones. They are more cost-prohibitive to repair and replace and insurers use the car cost in their calculations. You are subject to different rates based on the type of car you drive.Luxury vehicles, sports cars, and specific models may be more expensive to insure than basic sedans or SUVs. Your credit score impacts car insurance rates. Insurers view people with lower credit scores as at greater risk and charge higher premiums.
Your auto policy covers business use of your vehicle
If you use your vehicle for business purposes delivering goods and transporting clients may need commercial auto insurance. Personal auto policies exclude coverage for commercial use of a vehicle accident that occurred while using the vehicle for business purposes and may not be covered by your policy. If someone borrows your car and gets into an accident, their insurance may cover some or all of the damages if they have liability coverage. If the damages exceed their policy limits or they don’t have coverage, they will be held responsible for paying for the damage on their own. Businesses and their employees benefit from commercial coverage by minimizing the financial risks associated with vehicle use. Provides coverage for legal fees if you are sued for damages caused by a car crash. Covers injuries and medical expenses for both you and others involved in the accident. Depending on the type of policy and coverage you choose, a commercial auto policy may also cover rental vehicles and non-owned vehicles used for business purposes.
Full coverage means everything is covered
Many people believe that this will keep them safe in an accident. Full coverage is a term that refers to a combination of liability, collision, and comprehensive coverage. Even though these coverages provide a high level of protection, there may still be gaps based on your policy specifics.Understanding the facts about car insurance will help you make informed decisions about the coverage you need. A vehicle for business purposes or frequently lends it out to others is a good idea to review your policy carefully to ensure you have adequate coverage. If you have “complete coverage,” you should not assume that everything is covered. Take the time to review your policy and ask questions if there are any areas where you’re unsure.