10 Strange Auto Insurance Myths About Insurance Coverage

auto insurance myths about insurance coverage. Professional appraiser inspecting a damaged car after filing a claim

Generally, your policy can be cancelled only when it is revealed that you provided faulty information or committed fraud with the company. It can also be cancelled due to non-payment of premiums.

Thus, you should provide only authentic information to your insurers when purchasing or renewing a policy. However, you should not forget to update it whenever something new happens that can affect your policy.

(8) Rental Car Reimbursement Is Automatically Covered

It is one of the worst car insurance myths about insurance coverage prevalent among most of the drivers. People usually believe that rental reimbursement coverage will automatically come into play after your car is lost or stolen. But, actually it is available as an affordable add-on in a given policy.

According to the Insurance Information Institute, rental reimbursement coverage can be purchased by additional premium of $1 to $2 per months.

However, your additional coverage may have certain limits on the number of days you can rent a car. It also have limitations on the amount of money that can be spent as rental costs (including maximum cap).

Sometimes, rental coverage is also provided by credit card companies. But, don’t forget to check the fine prints or ask your agent for the coverage.

[Read Also: 16 Critical Mistakes To Avoid When Buying Car Insurance]

(9) Your Employer’s Insurance Covers You When Using Your Car For Work

It is one of the most popular auto insurance myths about insurance coverage that can ruin your finances during unexpected event. People often believe that they will be fully covered from employer’s insurance if they are driving their personal automobile for commercial purpose on behalf of employer.

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