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Getting your car insured is as important as keeping it in good condition with regular maintenance. It is one ownership expense that no owner should ignore because it keeps you stress-free every time you take your car out for a drive. However, people generally lack complete awareness about car insurance and tend to take it less seriously than they should. Here are some insurance-related facts that every car owner must absolutely know.  

Fact #1: The color of your car makes no difference 

One of the widely prevailing myths about car insurance is that the color of your vehicle determines the value of the premium you need to pay. But the fact is that the insurance industry is color blind. It does not matter whether you own a white, red, black, yellow or blue vehicle; you will end up paying the same premium calculated on the basis of parameters such as the make, model or year and your driving history and probability of theft or accident.

Fact #2: Certain car models have higher premiums 

Statistics prove that certain car models are more likely to be stolen or vandalized as compared to others. Similarly, some are high on safety ratings, which make them less likely to get into accidents. Moreover, the repair costs of some models may be comparatively higher. Insurance companies take into account these facts while deciding the amount of coverage they require and premium to be paid for insuring them.

Fact #3: You may not always get your insurance claim  

Even if you have your vehicle insured, getting a claim is not a cakewalk. There are several instances when you may get into trouble with your insurance claims because the insurer will conduct an extensive investigation to validate the legitimacy of your claim. You may even face denial for reasons such as fraudulent intentions, uncovered damages, intentional losses, irregular premium payments, and more. However, you may appeal against denial if you think that the reason is not valid. 

Fact #4: Higher rates do not necessarily mean more coverage

If you think that you will get higher coverage by paying up more premiums, you do not have your facts right. Different insurance companies charge different rates, which means that the same car and same driver may have to pay different premiums for the same coverage. When you buy car insurance for your new or existing vehicle, make sure that you compare different providers to get an optimal deal.

Fact #5: An accident caused by a friend will still be covered

It is noteworthy that insurance is tied with the vehicle rather than the driver. So don’t be worried while lending your insured vehicle to a friend. Even if your friend is driving your car and has an accident, you will still be covered provided that the accident is not caused due to their negligence. 

Now that you know car insurance facts better, it will be easier to decide the one that suits you the best and gives you optimal coverage at the right price. As a smart car owner, insurance is something that you must never miss.