We often hear inaccuracies about car insurance. You can even call some statements about car insurance fables. They can cause you to overspend on your car insurance or cause your car to be underinsured. We want to challenge some common myths.
Does Comprehensive car insurance is the best choice
Casco auto insurance offers the most extensive coverage, but that doesn’t make it the best choice. You should also consider the height of the costs. A Bugatti Chiron might be the best choice if you’re looking for a car, until you factor in the costs. The car costs 2.4 million euros. It’s the same with insurance. You don’t need to insure a 20-year-old car for liability. The premium is based on the new value and in case of damage it is based on the current value. You’re not going to pay hundreds of dollars a year in premiums for a car worth $1,000 or less.
Old cars do not have to be third-party insured
This can be an expensive fable. Casco car insurance is the logical choice for new cars. Often the general rule is that this coverage can no longer be used when the car is 4-6 years old. Unfortunately, this is too short a view. Even a 6 year old or older car can still be worth a lot of money. More limited coverage may result in no payment in the event of damage to your car. You can lose a car worth $15,000 all at once. So don’t just look at the age of the car when choosing auto insurance .
You can cancel your car insurance once a year
Insurance companies used to have a stranglehold on their customers. You could only cancel your car insurance on a specific date. You arrived too late? Then you were stuck with it for another year. In addition, the cancellation had to be received by the insurer a few months before this date. They even dared to offer policies with a duration of several years. These deceptive practices are no longer allowed. After a period of one year, the car insurance can be terminated daily. A notice period of one month is permitted. Contracts longer than one year are permitted, but additional terms apply. In practice, multi-year contracts are rare.
Expensive Car Insurance
On average, car insurance premiums rose sharply last year, but that doesn’t have to be your problem. In recent months, your insurer may have announced a sharp increase in your premiums. You can take this for granted, but you don’t have to. Don’t make the insurer’s problem your problem. Start comparing auto insurance! There’s probably an insurer out there that doesn’t want to charge you high premiums. Change immediately or at least before the date of the premium increase.
Right to 10 years without damage after 10 years of driving without damage
Damage-free years get you a 75% to 85% reduction. You must first accumulate these years without loss. You do this by insuring a car in your name and not making a car insurance claim. After 2 years of claims-free insurance, you have 2 years without claims. You can have 20 years of accident-free driving and no claims-free years. This does not condemn you to a very high premium. Once again, comparing car insurance is worth it!