Auto insurance is extremely essential for your vehicles. These auto insurance myths about insurance coverage can help you to select the right policy.
It is usually mandatory to hold at least a minimum auto insurance coverage while driving a vehicle on road.
When purchasing auto insurance policy for your individuals needs, it’s significant to understand the various factors that can affect cost & coverage of your car premiums. It is because without insufficient coverage it is worthless to hold a policy.
You need to analyze various types of policy coverage to get the most appropriate coverage at cost-effective price. It is possible only if you understand the various myths & misconceptions about coverage.
It will help you to prevent from being stuck in wrong policy coverage. Here are 10 strange motor insurance myths about insurance coverage:
(1) Your Car Insurance Policy Will Cover You, If Your Car Is Stolen, Vandalized Or Damaged
It is one of the most popular auto insurance myths about insurance coverage. It can adversely affect you in absence of full insurance coverage for your car.
People usually believe that you are fully covered for unexpected incidences in which your car is stolen, vandalized or damaged irrespective to the type of motor insurance plan.
But, actually you are fully covered only if you have purchased comprehensive & collision coverage on your vehicle. However, this coverage is usually optional in nature.
Therefore, people often prefer to drop this coverage & instead buy bare-bones policy. A bare-bones policy is just to meet minimum auto liability insurance & save money on premiums.
Generally, if worth of your car is less than $1,000 or less than 10 times the premium then purchasing an expensive coverage is not a cost-effective decision.
But, if you avoid buying comprehensive & collision coverage then your vehicle will not be covered from all types of damages.
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