Comprehensive insurance mainly addresses theft, vandalism, natural disasters, falling objects, and weather-related damages. It is often offered together with collision coverage that covers collisions with cars and objects. When buying comprehensive insurance, beware of the following myths that may distort your expectations.

Full Coverage Insures You Against All Risks

Full coverage often refers to a combination of comprehensive and collision policies. Although these coverages secure you against many hazards, they don't cover everything. These coverages are optional unless your car is on loan or is leased, in which case you should carry them.  

However, these coverages have a lot of gaps. For example, comprehensive coverage will not compensate you for personal belongings stolen along with your car. Your auto insurance agent can advise you on other coverages that include risks not featured in comprehensive and collision policies.

Insurers Consider the Color of Your Car

Many people believe that red cars attract higher insurance premiums. The myth is associated with the notion that police officers write tickets for motorists in red vehicles. The truth is that the premium for comprehensive insurance is based on the model, engine capacity, and body of your vehicle. Therefore, don't be afraid to get comprehensive insurance for your car because it has an exotic color.

There Is No Need for Comprehensive Insurance If You Are a Safe Driver

Comprehensive insurance covers accidental damages and loss due to natural occurrences. It also secures you in case your car is vandalized or stolen. Therefore, none of these incidents are related to your driving record. 

So, even if you are a safe driver, it doesn't mean your car will not be stolen or damaged by a flood. The coverage related to your driving habits is collision coverage. If you are a low-risk driver, you may be better off without it.

When You Change Insurers, You Will Lose the No Claim Bonus

No Claim Bonus is a discount for not filing claims on your insurance policy. The protection cover applies to the policyholder. When you change your insurance company, your NCB is transferred to that company. This bonus lasts for 90 days after your comprehensive policy has expired.

A Lapse in Your Insurance Coverage Isn't an Issue

If your policy is canceled because you missed premium payments or your coverage has lapsed, you should secure coverage as soon as possible. A lapse of a few days can increase your premiums the next time you buy insurance.

Additionally, when you are uninsured for a few days, you risk paying for any damages or incidences affecting your vehicle. Ensure you renew your coverage when it expires.