Car Insurance, Urban Myths And Facts, Explained.

Car insurance, Urban myths and facts, explained.

The unknown has always being a great promoter of myths and creative thinking. Car insurance is an industry that although it affects us all is little understood. Just like lightning bolts falling from the sky was the catalyst for all kind of gods and myths, understanding how insurance premiums and coverage works has also created all kinds of misconceptions and strange ideas. As with myths the best way to fight misunderstandings is with knowledge, with education.

The problem with myths and misunderstandings is that we get emotionally attached to them. In one Central American country the vast majority of the population feels it is dangerous to open your fridge after ironing. The contrast in heat and could cause you to have a stroke. The same goes for having a cold shower after you get all sweaty, mortally dangerous. For most of us that seems strange and unless we had extremely solid proof we would dismiss it as superstition. However if you really felt it was true you would need evidence that it is actually a mistaken idea.

This article will attempt to do that with car insurance misconceptions. Here it goes:

1) You don’t really need car insurance. Many believe that car insurance is just another annoyance imposed by the government to get you to spend money. And although it is true that having basic third party insurance is a legal requirement for all those that own a car there is sound reasoning for you to have car insurance for your own good. We live in a society that holds you responsible (at least in principle) for the damages you cause. Cars are dangerous, they can cause all kinds of injuries to you, your passengers and others. Having insurance protects you from the financial consequences of an accident. Even the smallest accident can cost thousands of dollars that would fleece most of us from our cash savings.

2) All insurance policies are pretty much the same. Big mistake. It is like saying that all cars are the same. It doesn’t matter how kind you are you are not going to say a Lada is just as good as a Bentley. The same goes for car insurance you can get the basic, bread and butter insurance that will just save you from a fine or you can get 100% first party insurance that shields from nearly all conceivable accidents and damages. The cost of course will reflect the kind of coverage and the car that is being insured as well as the type of driver you are.

3) Your credit score doesn’t matter. This might seem to be true. What does your credit rating have to do with your car insurance premium. Car insurance companies think different. Statistical analysis seems to have proven that drivers with good credit rating are less likely to be involved in a car accident and are therefore less of a risk for car insurance companies.

These are only three of the many misconceptions in car insurance. Help yourself by reading and learning more about car insurance and how you can save money.