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5 Common Car Insurance Myths Debunked

5 Common Car Insurance Myths Debunked

Auto insurance can be difficult to navigate through, particularly for younger car owners who have little experience navigating its waters. There are a number of common misconceptions about how your car insurance works, ranging from what it covers to how they determine what to charge you for coverage.

A responsible car owner should do their best to familiarize themselves with their insurance policy to understand how it works and what exactly it is they’re paying for. This can help you know your options should you ever get into a car accident without having to worry about learning everything as you use your insurance. Here are five common car insurance myths debunked.

Myth 1: Red cars are more expensive to insure

This persistent myth claims that red cars, being more attractive and thus more prone to theft, are expensive to insure and therefore will garner a higher car insurance payment for you. Up to 53 percent of millennials believe the myth that red cars are more expensive to insure. But of all the factors that go into determining what you will pay for insurance, the color of your car is not one of them.

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Many insurance agencies don’t even ask what color your car is before assigning you a rate. Factors that are taken into account include year, make, model, body type, engine, and age of the car.

Other factors that are more likely to affect your rate than the car color include the age of the driver and the city the car will be used in most often.

Myth 2: Insurance only applies when you are not at fault

Although 44 percent of Americans believe that insurance will not cover you in an at-fault accident, the truth is, insurance companies will help cover repairs, even for accidents you caused.

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Many states require liability coverage, or coverage to pay for repairs and medical costs associated with accidents in which you are at fault, but adding collision coverage and medical payment coverage to your insurance can help you out when you accidentally cause an accident so you aren’t left footing the entire bill alone.

Myth 3: Insurance applies to regular repairs

One thing your insurance will not cover are repairs for wear-and-tear and normal breakdown that happens from the depreciation of your car. You are responsible for maintaining your car, which means learning how to monitor it yourself or developing a relationship with a mechanic you can trust and taking your car in for regular check-ups.

In addition, reporting too many car problems to your insurance company in an attempt to get them to cover it will likely backfire. In fact, repeatedly telling them your car is giving you trouble will only make them want to raise your insurance premiums.

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Myth 4: Insurance will pay post-accident values

When your car is completely totaled after an accident, your insurance will look at a number of factors to determine your car’s actual car value in order to decide how much to provide as payout. However, one thing they will not do is attempt to calculate the ACV of your car post-accident.

After a wreck where your car is totaled and you need an auto accident lawyer, the post-accident value is almost certainly going to be near zero. Your insurance company cannot use this value and will calculate pre-accident values instead. However, don’t be surprised when that number is lower than the Kelly Blue Book claimed value of the car, as insurance companies do look for legal ways to minimize payout.

Myth 5: Auto insurance protects things inside your car

If you have comprehensive insurance, you may have some form of theft coverage. However, this coverage is for the vehicle itself, not the goods inside of the vehicle, which means anything expensive or of value that’s taken from your car is up to you to replace, not your insurance company. A break-in is similarly covered only to the extent that you can replace a broken window or handle, but what is taken in the break-in must be replaced on your dime.

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Of course, some forms of homeowner’s or renter’s insurance provide coverage for things inside your car, so you may want to look into the details of either of those policies if you have them because car insurance alone will not protect you from someone breaking into your car and taking your valuables.

Your car insurance is a valuable tool for peace of mind when you’re on the road, but it’s important that you make sure to know what exactly you’re paying for and what kind of coverage you have. It’s also important to consider what lacking coverage in certain areas can mean, and why you don’t necessarily want the simplest, cheapest plan available.

Featured photo credit: Saundra Castaneda via flickr.com

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Last Updated on April 8, 2020

Why Assuming Positive Intent Is an Amazing Productivity Driver

Why Assuming Positive Intent Is an Amazing Productivity Driver

Assuming positive intent is an important contributor to quality of life.

Most people appreciate the dividends such a mindset produces in the realm of relationships. How can relationships flourish when you don’t assume intentions that may or may not be there? And how their partner can become an easier person to be around as a result of such a shift? Less appreciated in the GTD world, however, is the productivity aspect of this “assume positive intent” perspective.

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Most of us are guilty of letting our minds get distracted, our energy sapped, or our harmony compromised by thinking about what others woulda, coulda, shoulda.  How we got wronged by someone else.  How a friend could have been more respectful.  How a family member could have been less selfish.

However, once we evolve to understanding the folly of this mindset, we feel freer and we become more productive professionally due to the minimization of unhelpful, distracting thoughts.

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The leap happens when we realize two things:

  1. The self serving benefit from giving others the benefit of the doubt.
  2. The logic inherent in the assumption that others either have many things going on in their lives paving the way for misunderstandings.

Needless to say, this mindset does not mean that we ought to not confront people that are creating havoc in our world.  There are times when we need to call someone out for inflicting harm in our personal lives or the lives of others.

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Indra Nooyi, Chairman and CEO of Pepsi, says it best in an interview with Fortune magazine:

My father was an absolutely wonderful human being. From ecent emailhim I learned to always assume positive intent. Whatever anybody says or does, assume positive intent. You will be amazed at how your whole approach to a person or problem becomes very different. When you assume negative intent, you’re angry. If you take away that anger and assume positive intent, you will be amazed. Your emotional quotient goes up because you are no longer almost random in your response. You don’t get defensive. You don’t scream. You are trying to understand and listen because at your basic core you are saying, ‘Maybe they are saying something to me that I’m not hearing.’ So ‘assume positive intent’ has been a huge piece of advice for me.

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In business, sometimes in the heat of the moment, people say things. You can either misconstrue what they’re saying and assume they are trying to put you down, or you can say, ‘Wait a minute. Let me really get behind what they are saying to understand whether they’re reacting because they’re hurt, upset, confused, or they don’t understand what it is I’ve asked them to do.’ If you react from a negative perspective – because you didn’t like the way they reacted – then it just becomes two negatives fighting each other. But when you assume positive intent, I think often what happens is the other person says, ‘Hey, wait a minute, maybe I’m wrong in reacting the way I do because this person is really making an effort.

“Assume positive intent” is definitely a top quality of life’s best practice among the people I have met so far. The reasons are obvious. It will make you feel better, your relationships will thrive and it’s an approach more greatly aligned with reality.  But less understood is how such a shift in mindset brings your professional game to a different level.

Not only does such a shift make you more likable to your colleagues, but it also unleashes your talents further through a more focused, less distracted mind.

More Tips About Building Positive Relationships

Featured photo credit: Christina @ wocintechchat.com via unsplash.com

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