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Car Insurance Myths That A Lot of Us Believe

May 17, 2011

There are a number of things that will affect how much you have to pay for car insurance such as gender, age, driving experience, address and type of car for example.  These things will determine your risk assessment by the insurance company and the amount you pay will depend on how much of a risk they assume you to be. 

However there are many people out there who are under the impression that there are many other factors which will determine the price of your car insurance.  The following are some of these car insurance myths:

No: 1    The colour of your car will affect the price you pay for car insurance.
There is no truth in this whatsoever.  How much or how little you are charged for your car insurance will not be impacted by the colour of your car.  The reason people thought that this was true was because it was thought that black cars are more likely to be involved in accidents as they are harder to see at night and white cars are more likely to be stolen as they are easier to re-spray.  However logical these reasons might seem, you will not have to pay more for your car insurance because of the colour of your car.

No: 2    Anything that is stolen from my car such as my phone, laptop, books or MP3 player will be covered under my car insurance.
The truth is that only your car is covered by your car insurance.  Your car insurance does not cover you for contents in the car.  However you may be covered for this under your home contents insurance.  Many home contents insurance policies will cover items outside of the home.

No: 3    I am covered by my car insurance when driving my car whether I am driving for business or for pleasure.
If you are using your car for business but your insurance policy is only covering you for commuting to and from work and for pleasure then you may not be covered if you have an accident.  You must disclose any business use to your insurance company so that you will be covered at all times.  You may pay extra but it will not affect the price too much.  If you are dishonest about your car use then any claims you make could be invalidated.

No: 4    If I let someone else use my car and they have an accident, their insurance will pay for any damages.
The reality here is that because it is your car, it will be your insurance that will have to pay out for damages.  If you do not have sufficient cover for all the damages, then your friends insurance could also be used but at the end of the day, the accident will go on your record even if you were not there at the time.  This will cause your insurance premiums to go up.