Insuring your car is the best proactive action you can take if you are looking to make provisions for unforeseen circumstances pertaining to your use of the car, and these may include but not limited to: covering car repair bills as a result of damages sustained in an accident or car vandalism by fire or hail, settling the cost of getting you a new one if your car got stolen, paying legal fees you are fined due to an accident, and also providing benefits to survivors of an accident that resulted in loss of lives.

But how do you go about insuring your car? Be educated. Learn the ten, basic myths of car insurance first. Then, shop around and compare car insurance premium rates and coverage of at least 3 different car insurance companies ( for instance state farm, allstate). That way, you can pick the plan that caters to your needs but is also within budget.

1Car Colors Determine Insurance Costs:

Probably you may have heard this before, and have been pondering about it since then. This is just a claim which had always been a focus of discourse in the insurance industries for a very long time, and it is quite surprising that it’s still reigning these days. Actually, as much as the factors determining your car insurance cost are; the color of your car, (either red, blue or pink), is not one of them. These factors include, but not limited to: the maker, body size (or space occupied), model, body type, engine size, car sticker price, the repair cost, the age of the car, its likelihood to get stolen, its total safety record, the driver’s driving record and credit history.

2My Insurance Company Will Cover the Damage If My Car Got Stolen or Vandalized by Fire, Hail or Trees:

These losses are not covered unless you have opted-in for a comprehensive coverage. Both collision and the comprehensive coverage are non-mandatory parts of your standard liability policy, but while the comprehensive coverage makes-up for damages that are not caused by collision, such as: car theft, vandalism by fire, hail, trees and even wildlife; collision coverage takes care of damages incurred when your involves in a collision, either totally or partially. But in a circumstance where you’re not at fault at all, that is also covered but through another section of your insurance policy.

3If Other People Drive My Car, Their Auto Insurance Policy Will Cover Them In case of An Accident:

This is false because the insurance policy is tethered only to your car, and not the person driving it. Therefore, if your car is involved in an accident when driven by someone else, you would be held responsible for the damages incurred. In this case, beware of whom you lend your car to as lending it means lending your insurance.

4Personal Auto Insurance Covers both Commercial and Personal Use Of My Car:

Your personal car insurance policy will not cover your commercial use of the car, but only personal. Personal in the sense that you only drive it to commute to and from your work place, dropping off and bringing your kids home from school, and other uses which are not necessarily for the aim of making money. However, it’s important you inform your insurer of any changes in the usage of your car. On the other hand, using your car for commercial purposes can increase your car insurance rates.

5I Will Receive A Rental Car After An Accident:

Most times, collision or comprehensive car insurance policy does not cover the use of a rental car, even if you have rented the car because your insured car was going through repair phases as a result of a fatal accident. However, you can include a rental car insurance in your standard policy at a usually small cost.

6My Car Rate Will Remain The Same If I Change My Location:

Changing your location of residence, depending on the distance, can cause a corresponding change in your car insurance rate often. The exact location you have moved to will determine whether your rate will increase or decrease.

7Expensive And Flashy Cars Mean Higher Rates:

Expensive and flashy cars have more likelihood to get stolen than other cars, therefore the cost of insuring them can be higher unlike old or less costly ones. More factors that may affect the rates dramatically include the car repair cost, loss history of the car, distance traversed daily or rate of use, and other potential crime risks at the owner’s resident.

8Insurance Covers Personal Properties Kept In My Car:

Whether collision or comprehensive, insurance policy does not cover the recoup of any of the car owner’s items such as: iPhones, iPads, laptops, brief cases, wallets, jewelry, golf clubs, base ball bats, and other personal items if they are involved in an accident. It’s only the car in question that is covered by the insurance policy. However, the aforementioned properties can be covered under property insurance. Furthermore, it is advisable to quickly take your valuable items, those that are within your reach before leaving the car in the event of an accident.

9All Insurance Companies Charge The Same Rate:

This is false. Not all car insurance companies charge at the same rate. The rate of one insurance company could be twice, or multiples of that of another company. So it is advisable to consult many insurance companies before you eventually choose which one you are considering.

10No Fault Insurance Means I Am Not At Fault:

This policy does not really mean that you are always going to be declared not at fault in the case of an accident, rather, it only means the insurance company takes care of the damages involved. If you are absolutely not guilty or responsible for the accident, the insurance company pays for the damages incurred, which they are going to recover from the other driver’s insurer, who had caused the accident. But if you were in any way found guilty of the accident, it’s with all possibilities that you’re going to experience an increase in your insurance rates.

These are the myths that could cost you money when you insure your car. They will enable you to understand what insuring your car entails, insurance policies and what they cover, as well as the insights you need in order get the best insurance service with your budget.

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Rahis Saifi is an editor of My Ultimate Success Tips. He always remains passionate towards innovation and his love for gadgets has been exhibited in his writing. His knack to learn more and more had turned him too passionate towards learning. His learning attitude had shaped him as a perfect writer, He writes about technology, gadgets, blogging, smartphone tips and tricks and software reviews.

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