Car Insurance Myths and Misconceptions
Shopping around for insurance quotes is a top strategy to save on your car insurance premiums. However, there is a lot of misinformation regarding Car Insurance NZ covers, which means you, might pay more than you should. Here is a revelation of some of these myths and misconceptions as well as the truth.
Myth #1- Small cars are the cheapest to insure
While the size of a car is a factor considered while determining Youi Car Insurance NZ rates, smaller cars are not always cheaper to insure than bigger ones. Smaller cars tend to sustain a higher degree of damage and the occupants usually get more injuries during an accident as compared to larger vehicles. Thus, the cheapest car to insure could be something such as a mid-sized SUV. Though it is a small car, it is a durable one.
Myth #2- Personal finances do not impact on your insurance rates
Though your insurer may not care about how much money you have in your account, your Car Insurance NZ premium might be based on how you manage your finances. Some insurers have realized that low credit scores are linked to high risk of a claim and consequently a larger average claim value. Therefore, if you want good Car Insurance NZ rates, watch your credit score.
Myth #3- Red cars are very costly to insure
Color does not affect your car insurance premiums. The considerations that are taken into account are the body type, model, engine size, model and the driver’s information.
Myth #4- Thieves tend to steal new cars
Older cars usually have few security measures, thus making them an easier target for burglary. A thief can be enticed by taking an older car for sale of spare parts. Theft is often dependent on location. Make sure you park your car in a secure neighborhood regardless of the age of the car.
Myth #5- Since I have “full coverage” insurance, I am covered for all circumstances
An important thing you should do is to find out the events covered by your Car Insurance NZ. While “full coverage” is a frequently used term, it is not a real type of cover. Therefore, though you may be having collision, liability and comprehension coverage, your policy might be missing in other Car Insurance NZ types. Commonly overlooked protections include compensation for emergency roadside help, uninsured motorist protection, and rental cars protection.
Myth #6- Courtesy cars are guaranteed after an accident
Courtesy cars are subject to availability. Mostly, you will only be given a courtesy car if your vehicle is repairable and you have taken it to a mechanic approved by the insurer. In case your car is written off or stolen, you may not be given a courtesy car.
Myth #7- Your insurer will cover you for accidents that you cause
It is partly right, as it is not always the case. If you were driving while drunk, your Car Insurance NZ provider is unlikely to pay for your claim. It is also the case in case you caused the accident intentionally, or you were negligent.
Myth #8- On reaching 25 years, your premiums decrease drastically
It is a fact that younger drivers tend to pay higher premiums. However, age is only one of the many factors that determine your Car Insurance NZ rates. Thus, it is not necessarily true that your premiums will reduce largely when you are 25.