Understanding Three Fundamental Aspects Concerning Car Insurance

One of the more aggravating aspects to owning a vehicle is paying the monthly auto insurance premium. Car insurance is essential for any car owner to protect themselves and their vehicle from damages and accidents.

But choosing a type of auto insurance policy, paying for one, and understanding what auto insurance myths are common on the market will greatly aid a person throughout the process. By understanding the basics of these three aspects to auto insurance, an individual will be able to better negotiate the world of car insurance.

The first basic understanding of car insurance that people will need to comprehend is that there are multiple types of coverage options for car insurance. The most frequently underused and misunderstood form of coverage that would greatly aid all car owners is comprehensive auto insurance.

Comprehensive auto insurance is a complementary aspect to car insurance that, when working in tandem with a collision insurance coverage option, can provide extensive auto insurance coverage. And although its name makes it seem like comprehensive auto insurance is an all-encompassing safety blanket form of insurance, it is important for consumers to understand what exactly is covered under a comprehensive auto insurance plan.
To clear some of the initial confusion, perhaps it would be best to refer comprehensive auto insurance as its other common name—other than collision or OTC insurance. This distinction helps to establish that comprehensive auto insurance is coverage on a vehicle that has been damaged without being involved in a car accident.

Some of the perils that an OTC or comprehensive auto insurance policy provide insurance coverage for include:

  • The theft of the vehicle. Although it should be noted that comprehensive coverage does not typically provide insurance coverage for individual personal items that may be stolen from the vehicle.
  • Damage incurred from falling objects such as tree limbs, power poles, or roofing materials.
  • Damages sustained from hitting an animal. Typically a bird or deer depending on the area where the subscriber lives.
  • Acts of vandalism incurred upon the vehicle.
  • Fire damage from an outside source or accidental ignition.
  • And damages sustained from natural disasters or severe weather. This often includes coverage from hail storms that can greatly damage a vehicle and would otherwise not be covered by insurance.

Because of all of the potential dangers to a vehicle beyond a car wreck, may have chosen to purchase comprehensive auto insurance to protect their vehicle from both mishaps and car accidents. Once a type or form of car insurance coverage has been chosen and policy decided upon, a person can begin to plan paying for the car insurance.

Monthly premiums on standard car insurance policies are typically costly enough to require that an individual or a family specifically budget for the expected expense every month. The cost for car insurance can be managed by working the price into the family’s monthly budget, but for the initial payment, before a budget that includes the insurance premium has been created, a family may wish to take out a small title loan to cover the cost.
A title loan is a small and safe loan that is borrowed on the value of the vehicle’s title. Title loans are easy to pay back and most can be repaid in full on the person’s very next payday.

With payment of the premium included in the budget, and with the initial expenses taken care of with the help of a small title loan, a family can enjoy the security of a well insured car. But there are several myths that surround car insurance that every insurance subscriber should be aware of.

Like with most things in this world, auto insurance has its own set of myths and false preconceived notions that can put the uniformed individual at a disadvantage while trying to decide on an auto insurance policy or even after they have received a policy. Here are a few of the most common myths surrounding auto insurance and what people will need to know to avoid falling for them.

  • The color of the car will influence premiums. A full quarter of individuals who were surveyed incorrectly assumed that painting their vehicle red would make their insurance premiums spike. The theory is that red cars are more sporty, therefore more powerful, therefor more costly to insure. But the truth is that most insurance companies rarely ask the subscriber for the color of their car.
  • Auto insurance will always include coverage on theft, fire damage, hail damage, or property damage. While most people may believe that having auto insurance covers every expense that could be incurred on their vehicle, the reality is that unless the person has comprehensive auto coverage the above losses to a vehicle will not be covered by standard auto insurance policies.
  • Car thieves steal new cars. Because of the rarity of parts in older models, especially those old junkers that are out of production on any level, an experienced car thief is actually more likely to steal older cars. The thief gets a bigger payday when they bring old cars with hard to find parts into a chop shop rather than a new luxury vehicle that is more or less common on city streets. Yet still, citizens believe that a new car will have an added boost to the premium due to the potential for theft.

These and other common auto insurance myths plague the everyday car owner. Before making any decisions concerning car insurance, be sure to speak with an insurance professional to clear the confusion and to get the best deal possible. If you’re looking for the best prices on insurance let Check City do the work for you.

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