While every vehicle owner has auto insurance, not all of them completely
understand the terms of the insurance coverage they have. Sure it is the job of the insurance agent to explain the insurance coverage to you. But it also is his/her job to make sales. As such, he/she might leave out some details to get you to take the auto insurance in question.
In this piece, we have taken the liberty to dispel some common misconceptions surrounding vehicle insurance that might affect the rate you pay.
Employers insurance protects the car owner when using the car to run work-related errands
This could not be further from the truth, many companies expect employees to use their vehicles to run work errands. They will reimburse you all your expenses or just your fuel expenses. No company provides insurance coverage in such situations. From the company’s perspective, doing this would cost them a fortune.
Whether you are using your car with family or for work, the auto insurance covering your car is your personal one. As such, if you intend to use your car for courier services, you should pick auto insurance in Alberta that covers your car even while at work.
If a friend borrows the car and gets into an accident, his insurance will cater to the damages
Again, this is not true. Your vehicle insurance only covers your car and not an individual. As such, when you give your friend your car, you also are giving him your personal auto insurance in Alberta, as well. Therefore, before giving your friend the car, make sure that he can drive and be safe and responsible while on the road. After all, if he gets into an accident, it is your insurance coverage rates that will increase.
No fault insurance denotes that in a vehicle accident, no driver is at fault
It does not mean that you will always be faultless in the event of an accident since you possess the no-fault insurance. In every car accident, the insurance company assesses the situation and investigates to determine which driver is to blame. So what exactly does this insurance cater to?
Well, it is simple. With this insurance coverage, the insurance company will cater to the damages and losses regardless of which driver is found at fault. But in the event the insurance company’s investigation determines you were at fault, you should expect an increase in your premiums the next time you are renewing the policy.
When in a small enough accident, it is preferred to settle the damages driver to driver to avoid the insurance premium rate from increasing
This is not always necessary. It always depends on the amount of damage the car sustains. It is important to point out that it is a requirement that all accidents are reported to the police and that you intend to file a claim.
And while it might seem like a great idea to cater to the vehicle damages, this results in you paying a lot more for the damages than you should or being blamed for damages sustained. Bringing in your insurance company will see to it that you are protected from these occurrences.