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3 Myths About Car Insurance Debunked

3 Myths About Car Insurance DebunkedPhoto by Olav Tvedt

Originally Posted On: 3 Myths About Car Insurance Debunked – Asheville Blog

 

If you drive a car, you have to have car insurance; it’s the law. Plus, driving without it means that, even if it was legal to do so, you could end up having to pay out a lot of money if you were involved in an accident, whether or not it was your fault. So car insurance is a must.

 

However, just because car insurance is mandatory and you are sure to have some in place if you’re a driver, that doesn’t mean those who use it or have it understand it completely. The fact that there are plenty of myths about car insurance that confuse things isn’t helpful either. So we’re going to debunk some of those myths to help you understand a little more.

 

You Can’t Get Insurance After An Accident

The idea that, if you were involved in an accident, it would be hard to find car insurance the next time you have to apply for some (or even the idea that your current insurance will be revoked) is a prevailing one, but it’s likely that the reason people believe this is that they are confusing the insurance with what might happen to your driver’s license. After an accident, the authorities can take your license away, and it can be hard – perhaps impossible – to earn it back again, but this is not the case with your insurance.

 

That’s not to say that you can get the same insurance you had before your accident or driving conviction. Your premiums are likely to have become more expensive, and not all insurers will be happy to have you on their books. However, there are specialist insurances and knowing the difference between SR22 and regular insurance means you should be able to be insured no matter what happened in the past.

 

Your Insurance Will Fully Pay For A New Car

Most people have an idea in their minds that if their car were destroyed or no longer safe to drive or even stolen, their insurance would pay for a new car for them. This is partly right. Your insurance company won’t let you go out to the dealership, find any car that you want, and pay the dealer on your behalf; if they did that, people would be crashing their older cars and getting ‘free’ news ones all the time.

 

Instead, your insurer will pay you what your car was worth when it was damaged or stolen. So if you have an older car, you might not get a large amount of money. A newer car will give you more, but even a brand new car will depreciate as soon as you drive it away from the dealership, so the chances of being able to replace your car with a newer model are slim.

 

You Get What You Pay For

In most areas of life, if you pay a lot for something, it’s probably going to be of better quality than if you pay for a cheaper version of the same thing. However, car insurance is slightly different. Because each insurer will have its own criteria and its own pricing structure, it’s wise to compare like for like when you’re shopping around for car insurance. Two policies that give the same benefits and level of cover could cost different amounts with different insurers. If this is the case, then choosing the cheaper option makes sense; you’ll save money and get the same policy.

 

Of course, in some cases paying less for your insurance means you’ll get less, which is why ‘you get what you pay for’ isn’t always correct but sometimes can be. It might sound complicated, but as long as you make a good comparison so you’re not over-paying or under-insuring your vehicle, you can be satisfied with your insurance.

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