1. You must have a deductible – False!
No, with most insurance companies, you can choose not to have a deductible, however this may increase your monthly premium. It’s not just about the cheapest cars to insure, it’s about the type of coverage, the amount of deductible and more.
>>> FAQ – What is an insurance quote?
I get this question a lot from the younger readers, and as always, there is no such thing as a stupid question! An insurance quote is provided by an automobile insurance agent, the price represents how much it will cost you to insure a specific car. The price may vary depending on the coverages you choose. Some coverages are mandatory while others are optional. The law requires an individual to ensure the car they drive.
2. The insurance company of the person at fault for the accident will cover all the costs – False!
Some states or provinces are signatories, which means the involved insurance companies will repair their own vehicle without going after each other for recovery. Other states or provinces allow for subrogation (recovery) for repairs on both cars. Car insurance in Toronto, for example, when it comes to a car collision, each insurance company would cover their own insured car (providing there is proper coverage in place) without going after the other party’s insurance company.
3. A rental is always provided in case of an accident – False!
In some states and provinces you have to choose rental coverage on your policy to be entitled to a rental car during an accident. Purchasing rental coverage may impact your monthly premium. When setting up your car insurance policy ensure to ask about rental coverage options. We always think it’s never going to happen to us, but it’s important to insure yourself properly in case of an accident. As they say, better safe than sorry!
4. Hit & Run accidents are always covered – False!
A hit and run would be covered under collision coverage. If your car suffered from a hit and run and you don’t have collision coverage on your vehicle, then the repairs would not be covered under your policy. Many people think a hit and run is covered under a different type coverage, which isn’t true.
5. If I’m not at fault, I don’t pay the deductible – False!
Many people believe they don’t have to pay the deductible when someone or something else damages their car, such as hail, vandalism, fire, flying debris etc. The truth is, the deductible is payable and then the insurance company may attempt to get the repair costs (including your deductible) back from the party responsible. For example, if a gas station car wash mechanism failure damaged your car, your insurance company will try and hold them accountable. If the insurance company is successful in getting their money back, you will have your deductible reimbursed.