7 Car Insurance Myths

Few of us really enjoys shopping for things like car insurance.  We are constantly barraged with offers of

cheap car insurance, all kinds of discounts, warnings, falsehoods and myths.  Wouldn’t it be great if you could cut through the muddy waters right to the real story?  Maybe reviewing some myths about car insurance will give you a heads up.

Myth #7

Newer cars are more likely to be stolen than are older cars.

Oddly enough, that is not the case.  With the economy in the shape that it is in, thieves are making money from the parts that they can sell off of older cars.  Where there is a way to make money there is going to be someone trying to do it.  Additionally, many of the older cars don’t have the security measures that the newer cars employ.

Myth #6

No problem, if my car’s vandalized or stolen my insurance will cover it.

Many individuals, due to auto insurance laws defined by their state, go with the type of liability insurance that is relatively bare-bones.  Liability insurance does not cover vandalism and stealing.  On the other hand, your car could be covered for those – if that is you have comprehensive and collision coverage.  That also covers acts of God, crime, weather and accident damage.

Myth #5

I couldn’t drive my car away from the accident so the insurance company will probably say it’s a total loss.

That is a total falsehood.  Your insurance company will utilize their experts to determine whether or not your car is a total loss.  Some companies go as high as 70% but most are on the level of 50%-ish when it comes to damage resulting in a total loss.  (repair cost vs. value)

Myth #4

It costs less to insure inexpensive, smaller cars.

That’s a pretty general statement but, depending on your specific insurance company it may not necessarily be true.  Remember that in an accident, the smaller car is probably always going to come out on the bottom and that means nasty damage to you and the car.

Myth #3

My rates will go down if I maintain a clean driving record.

As true as that may be – over an extended period of time that is – there are other determining factors that have more to do with what determines your rate of insurance.  (i.e. Where you live, how old you are, your career, model, year and make of your car, etc.)

Myth #2

 If I have full coverage on my auto it will cover any towing and rental.

If you have towing and rental coverage your insurance will cover towing and rental.  They are specific additions to your policy.

Myth #1

Buying insurance online is the only way to save money.

While that’s not particularly true, the discounts available online, the fact that shopping online saves so much time and gasoline, and the sheer convenience of not even having to get out of your robe and slippers makes online shopping for insurance (or anything else) an absolute benefit.

You shouldn’t have to feel like you’re reading through ‘Gone With The Wind’ when you’re reviewing your car insurance policy.  Simple and straightforward always beats lengthy and overly complicated.  If the insurance companies could all get together on that, how much easier would shopping for an affordable policy be?

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