Generally, driver’s insurance will be liable only when owner of the car doesn’t have a policy. But, it is secondary liability. Therefore, losses incurred during an accident by your vehicle will be covered by your own policy.
Thus, you should not lend your car to anyone without being familiar with his/her driving record.
(4) Regular Auto Insurance Covers Both Personal & Business Use Of Your Car
It is one of the most common car insurance myths or misconceptions that can ruin your finances on claim rejection. People often believe that buying personal auto insurance will protect you even in situations when you are using your vehicle for business purposes.
But, actually your personal car policy will not cover you if you are self-employed or using your vehicle for the purpose of business.
You should purchase auto insurance specially designed for business purpose at higher premiums than a personal auto insurance policy. However, if your employees are also using your own vehicle for business operations then make sure that they have good & clean driving record.
You should not forget to check the type of coverage provided by your insurer on using vehicle for commercial purpose.
(5) Personal Items Inside My Car Are Covered
It is one of the most shocking auto insurance myths about insurance coverage that can surprise anyone. People often believe that if personal items like Smartphone, laptops or fur coat, etc. is damaged or stolen from your car then you may ask your car insurer to pay for the losses.
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