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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 December 2, 2018

How to Flow Your Way to a More Productive Life

How to Flow Your Way to a More Productive Life

Ebb and flow. Contraction and expansion. Highs and lows. It’s all about the cycles of life.

The entire course of our life follows this up and down pattern of more and then less. Our days flow this way, each following a pattern of more energy, then less energy, more creativity and periods of greater focus bookended by moments of low energy when we cringe at the thought of one more meeting, one more call, one more sentence.

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The key is in understanding how to use the cycles of ebb and flow to our advantage. The ability to harness these fluctuations, understand how they affect our productivity and mood and then apply that knowledge as a tool to improve our lives is a valuable strategy that few individuals or corporations have mastered.

Here are a few simple steps to start using this strategy today:

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Review Your Past Flow

Take just a few minutes to look back at how your days and weeks have been unfolding. What time of the day are you the most focused? Do you prefer to be more social at certain times of the day? Do you have difficulty concentrating after lunch or are you energized? Are there days when you can’t seem to sit still at your desk and others when you could work on the same project for hours?

Do you see a pattern starting to emerge? Eventually you will discover a sort of map or schedule that charts your individual productivity levels during a given day or week.  That’s the first step. You’ll use this information to plan your days going forward.

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Schedule According to Your Flow Pattern

Look at the types of things you do each day…each week. What can you move around so that it’s a better fit for you? Can you suggest to your team that you schedule meetings for late morning if you can’t stand to be social first thing? Can you schedule detailed project work or highly creative tasks, like writing or designing when you are best able to focus? How about making sales calls or client meetings on days when you are the most social and leaving billing or reports until another time when you are able to close your door and do repetitive tasks.

Keep in mind that everyone is different and some things are out of our control. Do what you can. You might be surprised at just how flexible clients and managers can be when they understand that improving your productivity will result in better outcomes for them.

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Account for Big Picture Fluctuations

Look at the bigger picture. Consider what happens during different months or times during the year. Think about what is going on in the other parts of your life. When is the best time for you to take on a new project, role or responsibility? Take into account other commitments that zap your energy. Do you have a sick parent, a spouse who travels all the time or young children who demand all of your available time and energy?

We all know people who ignore all of this advice and yet seem to prosper and achieve wonderful success anyway, but they are usually the exception, not the rule. For most of us, this habitual tendency to force our bodies and our brains into patterns of working that undermine our productivity result in achieving less than desired results and adding more stress to our already overburdened lives.

Why not follow the ebb and flow of your life instead of fighting against it?

    Featured photo credit: Nathan Dumlao via unsplash.com

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