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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 September 25, 2019

How to Tap Into the Power of Positivity

How to Tap Into the Power of Positivity

As it appears, the human mind is not capable of not thinking, at least on the subconscious level. Our mind is always occupied by thoughts, whether we want to or not, and they influence our every action.

When we were still children, our thoughts seemed to be purely positive. Have you ever been around a 4-year old who doesn’t like a painting he or she drew? I haven’t. Instead, I see glee, exciting and pride in children’s eyes. But as the years go by, we clutter our mind with doubts, fears and self-deprecating thoughts.

Just imagine then, how much we limit ourselves in every aspect of our lives if we give negative thoughts too much power!

We’ll never go after that job we’ve always wanted because our nay-saying thoughts make us doubt our abilities.

We’ll never ask that person we like out on a date because we always think we’re not good enough.

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We’ll never risk quitting our job in order to pursue the life and the work of our dreams because we can’t get over our mental barrier that insists we’re too weak, too unimportant and too dumb.

We’ll never lose those pounds that risk our health because we believe we’re not capable of pushing our limits.

And we’ll never be able to fully see our inner potential because we simply don’t dare to question the voices in our head…

But enough is enough! It’s time to stop these limiting beliefs and come to a place of sanity, love and excitement about life, work and ourselves.

So, how can we tap into the power of positivity?

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“Happiness cannot come from without, it comes from within.” – Helen Keller

It’s not as hard as it may seem; you just have to practice, practice, practice. Here are 4 simple yet powerful ideas on how you can get started.

1. Learn to substitute every negative thought with a positive one.

Every time a negative thought crawls into your mind, replace it with a positive thought. It’s just like someone writes a phrase you don’t like on a blackboard and then you get up, erase it and write something much more to your liking.

Just take a look at these 10 Positive Affirmations for Success that will Change your Life.

2. See the positive side of every situation, even when you are surrounded by pure negativity.

This one is a bit harder to put into practice, which does not mean it’s impossible.

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You can find positivity in everything by mentally holding on to something positive, whether this be family, friends, your faith, nature, someone’s sparkling eyes or whatever other glimmer of beauty.

If you seek it, you will find it.

3. At least once a day, take a moment and think of 5 things you are grateful for.

This will lighten your mood and give you some perspective of what really is important in life and how many blessings surround you already.

Here’re 60 Things To Be Thankful For In Life that can inspire you.

4. Change the mental images you allow to enter your mind.

How you see yourself and your surroundings make a huge difference to your thinking.

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Instead of dwelling on dark, negative thoughts, consciously build and focus on positive, light and colorful images, thoughts and situations in your mind a few times a day.

Learn from this article how to change your mental images: How to Think Positive and Eliminate Negative Thoughts

If you are persistent and keep on working on yourself, your mind will automatically reject its negative thoughts and welcome the positive ones.

And remember:

You are (or will become) what you think you are.

This is reasonable enough to be proactive about whatever is going on in your head.

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Featured photo credit: Lauren Richmond via unsplash.com

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