Basic Car Insurance

Myths serve a purpose: to be debunked or believed. In this instance even car insurance have myths. Here are some examples below:

No-fault insurance means, it’s not my fault. – No-fault insurance means your insurance company pays for your damages regardless of who’s at fault.

The color of my car affects my insurance rate. – The color of your car does not impact your car insurance rate. Your vehicle’s year, make, model, body type, engine size, credit history and driving record are factors that affect your insurance rate.

If I lend my car to a friend, got in an accident, his insurance company will pay for the damages? – Your car is your responsibility. Even if you weren’t present during the accident, you will be marked on your insurance record and your insurance premium could go up.

Source

The fixed contribution you must pay each time your car is repaired through your car insurance policy is called the deductible and is made directly to the repair garage upon collecting the car. If the car has been declared a total wreck, the insurance company will deduct the excess agreed on the policy from the settlement payment being made to the car owner.

If the accident is the other party’s fault, and the third party’s insurance provider accepts the liability, the excess payment may be claimed from the other party’s insurance company. If the other party is uninsured, the policy’s minimum limits include coverage for the uninsured motorist at fault.