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Biggest Car Insurance Myths

The biggest car insurance lies and myths ones are the ones that have stood the test of time, confusing multiple generations of drivers along the way. Auto insurance can be somewhat complicated. There is no doubt about it: we can easily be confused by just reading our policies. These myths about auto insurance have taken many drivers with them and made them believe. Don't fall for every claim like this that you hear, but check the facts for yourself so that you will know the real story. Become a savvy consumer and know the facts from fiction. Here are a few of the most common myths debunked.

Red Cars Expensive to Insure

Many times over the course of any driver's life, he or she will hear some form of this one. The truth of the matter is that red cars do not cost a cent more to insure than any other color. The color of the vehicle is not one of the factors that auto insurers use to compute the rates they charge their customers. Most of the time, when a company is calculating a price quote you'll notice that they will not even ask for a color to enter with all the other information they take down.

The red car myth has been around for a very long time. It may have something to do with the fact that drivers of red sports cars have long been thought of as rebellious or wild and that these drivers are sometimes looked upon as dangerous. Interestingly enough, drivers that prove to have these characteristics certainly will pay more for their insurance, but they'll do this regardless of whether their car is red, purple, or green. Insurers do think about car make and model. They look at the body type of the vehicle, the engine size, the age, and factors like that, but not the color.

Thieves like Stealing New Cars

This myth has been around for years and years. Fact is, it's the other way around as far as thieves' preference is concerned. They prefer to steal older cars, not newer ones. There are many different possible reasons for this. One very likely reason is that older cars are simply easier to steal. They are less likely to be locked (and more likely to have the keys right in them), and less technologically advanced so they are also easier to steal without the keys. Another reason is that cars last longer than they used to, and more people in a swooning economy are holding on to their cars longer. This creates a big market for older used car parts.

Insurance will Cover Car Theft

Another common myth that people inexplicably have stuck in their head is that their insurance company will cover their loss if their car is stolen. Similar versions of this myth involve the same assumption about cars burned up in a fire and those damaged by hail. The truth is that auto insurance does provide coverage for all three of these loss types, but only if the car was covered with comprehensive auto insurance. Without comprehensive, there is no coverage in any of these loss circumstances.

Car Paid Off When Totaled

This myth is somewhat similar to the previous one, but it relates back to a different part of an auto policy. Some people think that if they have auto insurance, their car will be automatically paid off if the car gets totaled in an accident. Their thought is that this is what full coverage means: that they will be fully covered no matter what they owe in a loan or a lease. But truthfully, it all depends on how much you owe and what your insurer thinks your car is worth. You are still responsible for whatever is still owed on a totaled car after you've been paid by the insurer. If you really want full coverage in this situation and you are underwater on your loan, get gap insurance. It is available on both leases and loans, and covers you if your car is totaled before it's paid off and you owe more than it's worth.

Rental Car Coverage Built In

Many drivers assume they have automatic rental car coverage that kicks in if their car is stolen or damaged in an accident. Well, this is an available option on auto insurance policies, but it is certainly not standard on all of them. Even comprehensive and collision may not include any rental car coverage. You might have to add it even if you have full coverage, but usually it is very affordable.

Looking at some of these common auto insurance myths, it is clear that as drivers and policy holders, we need to pay more attention to our policies so we know what they include.

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