Car Insurance Myths We Should Stop Believing

If you’re a first-time applicant for car insurance in the Philippines, you may not be too knowledgeable on the basics of a regular policy. You might also have some preconceived notions about it based on hearsay or your own assumptions. In order to be more informed about this so you can get the best car insurance in the Philippines, here are some myths that you should stop believing and the actual truth behind said myths.

Myth 1: Expensive cars cost more to insure

It’s easy to assume that the more expensive the car is, the more it costs to have it insured. But this is actually not the case. In fact, the repair costs of a car have a higher impact on the premium itself. It’s actually the mid-priced models that are more expensive to repair due to the higher loss history, hence, having a higher insurance rate. So do keep these in mind when allocating a budget for paying insurance, as you might falsely believe your not-so-expensive car is cheaper to insure.

Myth 2: Full coverage is for everything

Don’t be fooled by the "full" in full coverage insurance. That usually refers to comprehension and collision coverage. While this does cover a lot of possible scenarios on the road such as natural disasters, accidents, and vandalism, it doesn’t do that should your items be stolen inside said car. Do check with your insurance agent on the specifics of your policy and don’t just assume that you have everything you need from the get-go.

Myth 3: The driver’s car insurance applies at all times

Car insurance is tied to the policyholder and the car of said person. This means that even if someone else is driving your car, the coverage is based on your policy. Even if they themselves have their own insurance, the basis will be yours as it’s your vehicle. On the plus side, this also means that your policy can cover anyone you’ve allowed to drive your vehicle. Just be mindful of this and the people you entrust your car to so that your ride is in safe hands. This also prevents you from worrying about your coverage being exceeded due to their damages.

Myth 4: Your credit score is separate from your premium

While one’s credit score isn’t the basis of the cost of the insurance premium, it isn’t entirely separate either. The calculation takes into consideration factors such as age, records, and, as mentioned, credit history. A positive history usually means that you have a good record of paying off loans, making you trustworthy in the insurer’s eyes.

Being informed and knowledgeable of car insurance can help you choose better for you and your needs. Don’t be misled by myths and preconceived notions so that you don’t choose wrong. Always do your research and ask questions to your agent if necessary so you can get the best policy for your vehicle.

Blogs, Information, Real Estate Topic and Many more.