Debunking Common Car Insurance Myths
Car insurance is a must-have for every driver, but misconceptions lead to the majority being uninsured (or with the wrong amount of coverage). We’ll be setting the record straight, to help you make more informed decisions!
Myth 1: You Only Need Minimum Coverage
One of the biggest misconceptions is that the minimum required car insurance coverage is enough to keep you fully protected. While opting for minimum coverage might save you some money upfront, it could leave you exposed in the event of a serious accident.
Minimum coverage typically includes third-party liability insurance, which only covers damages to other people’s property or medical costs if you’re at fault in an accident. It doesn’t protect you from expenses related to your own vehicle’s repairs.
Myth 2: Red Cars Are More Expensive to Insure
You’ve likely heard that red cars cost more to insure, but that’s simply not true. The colour of your car has no bearing on your insurance premium. Instead, insurers consider factors such as your driving record, the make and model of your car, your location, and the type of coverage you select.
Myth 3: Your Credit Score Doesn't Affect Your Premium
Many drivers believe that their credit score doesn’t influence their car insurance rates, but the truth is, it often does. Insurance companies frequently use credit-based insurance scores to help determine premiums. A higher credit score can be a sign of lower risk, leading to lower premiums, while a lower score might result in higher rates.
Myth 4: Personal Car Insurance Covers Business Use
Using your personal car for business purposes? Don’t assume that your personal car insurance will cover you. Personal policies typically exclude coverage for commercial activities. If you’re in an accident while conducting business, you may not be covered unless you have the appropriate business or commercial car insurance.
Myth 5: Your Insurance Covers Stolen or Vandalised Belongings
It’s a common misunderstanding that car insurance covers personal belongings stolen from your car. Unfortunately, car insurance generally doesn’t cover stolen or vandalised personal items left inside the vehicle. To protect your belongings, you can add vehicle contents cover to your policy.
Myth 6: The Car Owner’s Insurance Covers All Drivers
If you borrow a friend’s car, you might think their insurance policy will cover you in case of an accident. However, insurance usually follows the car, not the driver. Depending on the policy, you may not be fully covered when driving someone else’s vehicle. Always check the policy details before borrowing a car.
Myth 7: Your Premium Will Skyrocket After Any Accident
While it’s true that accidents can impact on your insurance premiums, not every accident will cause a massive rate hike. Insurers consider several factors, including the severity of the accident, who was at fault, and your overall driving record. A minor fender bender may not result in a significant premium increase, while a more serious collision could.
Trust the Facts, Not the Myths
Don’t let car insurance myths guide your decisions. You can make smarter choices for better protection, without overpaying. That’s why we offer customisable cover to suit your needs and budget.
Take control of your car insurance, with dotsure.co.za!
