Myth 5: In case of an accident, I have to pay from my pocket and then go through the hassles of claim processing
This myth is partly true and partly false. It depends on whether you have collision coverage or not. Collision coverage is also optional and pays for the damages to your car caused by a collision with another vehicle or object. If you have collision coverage, then you can choose to file a claim with your own insurance company or the other driver’s insurance company, depending on who was at fault. If you file a claim with your own company, you may have to pay a deductible upfront, but you will get reimbursed later if the other driver was at fault. If you file a claim with the other driver’s company, you will not have to pay anything upfront, but you may have to wait longer for the claim to be processed and settled.
If you do not have collision coverage, then you can only file a claim with the other driver’s insurance company if they were at fault. If they were not at fault or if they were uninsured or underinsured, then you will have to pay for the damages out of your own pocket.