5 Pieces of Car Insurance Common Knowledge That Aren’t True

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No one can deny the fact that they need to carry car insurance if they want to operate a motor vehicle legally while in any given state in the country. The states certainly set up their own rules as far as car insurance is concerns, but all states require drivers to carry at least some insurance.

Affordable car insurance is the key for most people. They want something that they know they can lean in on and afford when they require coverage today. It is a necessity because there are many people who want affordable car insurance for low income families that just can’t afford to pay for anything much beyond the state minimums. In other words, affordable car insurance for new drivers is something that many consumers are striving for even as it becomes harder and harder to find.

Affordable auto insurance companies have sprung up throughout the country, but it is not always easy to find their policies and what the exact price tag on those policies is. If you want to add to insurance policy or do something else that requires you to add coverage to what you already have, then you might as well expect that it is going to cost some extra money. Just be prepared for these increases in charges, and try to do what you can to absorb them to the best of your ability.

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Along with health insurance, auto insurance is one of the most widely held types of insurance in the United States — and not only because a certain amount of coverage is mandated by law. Yet despite its ubiquity, myths and misconceptions regarding auto insurance, insurance providers and rate determinations abound. Here are five car insurance myths you shouldn’t fall for when you’re shopping for auto insurance quotes:

  1. Basic Insurance Covers Damage, Vandalism and TheftThis is by far the most widespread misconception people have about auto insurance. The most basic coverage — the kind you have to carry by law — is liability insurance, and all it does is protect other drivers should you cause an accident. You’ll have to carry collision insurance to get your own damage paid for after an accident, and you’ll need comprehensive insurance to cover incidents such as vandalism and theft. Keep that in mind as you’re searching for cheap auto insurance.

  2. The Color of Your Car Can Drive Up Insurance RatesInsurance providers don’t care about the color of your car, so you can choose red without worrying. However, your rates will depend on the make, model and year of the car, as well as your driving habits and age. Avoiding tickets and accidents will probably affect your rates more than any other factor you control.
  3. Insurance Providers Can Cancel Policies at WillYour insurance company enters into a contract with you, and they can’t cancel your coverage without good reason. You should, however, expect that your policy will be canceled if you stop paying your premiums or give false information when obtaining your insurance.
  4. There’s No Need to Protect an Old Car Against TheftPeople often skip coverage for theft on older cars, assuming that they’re not valuable enough to be a target for thieves. But because older cars are less likely to have sophisticated anti-theft systems, many car thieves actually prefer older cars. It’s still up to you to weigh the risk, but you shouldn’t expect the age of your car to automatically protect you.
  5. Auto Insurance Covers My Injuries From an AccidentIn most cases, coverage of injuries in an accident depends on fault. If you’re hurt in an accident that another driver causes, their insurance company will pay your claim. But if you’re at fault, your insurance policy will cover the other driver, not you. You should look into no-fault insurance or personal injury protection if you’re worried about medical costs associated with auto accidents.

What other common misconceptions do drivers hold about auto insurance? Discuss in the comments.

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