When searching for car insurance, it's always important to have a good understanding of the factors that affect your policy. Since car insurance policies differ from company to company, there are plenty of myths out there that you could end up believing, even if you think you know everything! We've put together a list of some of the most common car insurance myths to help you separate fact from fiction.
"The colour of my car affects my car insurance policy."
The myth about car colour is one of the oldest myths about car insurance policy. The myth tells that cars with 'loud' colours (like red) are more likely to get stolen than cars with discreet colours, such as grey or white. While some insurers do factor in car colour to your premium, PD does not rely on this rating. We calculate your rate based on your driving record, car make, safety features, and how much it will cost to repair or replace the car in the event of an accident.
"My insurance will cover mechanical repairs."
Most new drivers fall into the trap of thinking their insurance will cover mechanical repairs and breakdowns. The truth is, your car insurance will most likely not cover mechanical failures and breakdowns that naturally go with owning a vehicle. In fact, calling your insurer to make a claim that isn't covered by your insurance can result in higher premiums over time. Make it a point to find a skilled mechanic you can trust and have regular preventive maintenance. It also pays to learn how to do some basic repairs yourself.
"Thieves only steal new cars so I don't need comprehensive car insurance."
A misconception about car theft is that thieves are only after new cars. In reality, thieves are more likely to steal older and more trustworthy vehicles because there's a large demand for their parts. A newer car wouldn't have as much of a demand for their parts. If you are driving a secondhand car, it's worth considering getting a comprehensive car insurance that covers you for car theft or loss, among others.
"Compulsory third party insurance covers damage to my car."
Compulsory third party insurance (also known as CTP or green slip) is mandatory for every car driver in Australia and is typically included in the cost of car registration. It's the most basic insurance you can get. However, CTP only covers damage or injury caused to another person by your car, meaning the cost of the damage to your car won't be covered. Getting a comprehensive car insurance can help minimise costs and cover your own car for damages.
"Personal property inside my car is covered by my car insurance."
Do you often leave valuables inside your vehicle? It's important to note that most car insurance policies don't cover personal property. Valuables left inside a vehicle make your car more vulnerable to theft. Even if you're just running a five minute errand, take important belongings with you. Better safe than sorry.
Equipping yourself with facts will help you save more on your car insurance premium. If you have questions about your policy, it's best to talk to your provider to set the record straight. PD offers affordable comprehensive car insurance. Apply for car insurance online or call us to learn more.