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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 January 25, 2021

What Should I Do Today? 30 New Things To Do Today

What Should I Do Today? 30 New Things To Do Today

It’s always fun to do something new, but often we fall into the trap of spending our weekends the same way.

If you’re stuck in the same old routine, it might be time to try something new.

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What should I do today? No ideas?

Everything listed here is something you can easily do no matter where you live, and even on a tight budget! Try out one of these 30 new things today, you’ll be happy you did.

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Try Out These 30 New Things To Do Today

  1. Visit a suburb in your city that you’ve never been to before, or somewhere you haven’t explored much.
  2. Learn ten phrases in a new language–what about Japanese, Italian or Portuguese?
  3. Listen to a genre of music you haven’t tried before–perhaps Jazz, Punk or Blues?
  4. Have a picnic in your local park complete with a packed lunch and your animal friends.
  5. Start a daily journal to write your thoughts in.
  6. Try a new cuisine–what about French, Lebanese or Korean?
  7. Visit your local library and borrow some books for the weekend.
  8. Plant some flowers in your garden. If you don’t have one, try an indoor potted plant.
  9. Visit a local museum or art gallery and view their latest exhibition.
  10. Learn a new skill–what about sewing, gardening or cooking? You’ll be surprised what you can learn in an afternoon.
  11. Say hello to a neighbor you don’t usually talk to.
  12. Make a card for a friend and send it to them with a handwritten note.
  13. Learn how to cook a new dish for dinner. We all get tired of eating the same thing, why not try making something new?
  14. Re-read an old favorite book. Don’t leave it gathering dust on your book shelf; get it out and read it all over again.
  15. Research the culture of a different country online–what about India, Guatemala or Sweden?
  16. Go for a walk or bicycle ride around your neighborhood.
  17. Watch a classic film like Casablanca, The Godfather or The Wizard of Oz.
  18. Make a photo album of a recent holiday you took. Don’t let your memories get lost on your computer hard drive; make a special keepsake album of your trip.
  19. Visit your local farmers markets and pick out some fresh produce. Farmers markets are full of delicious fresh fruit, veggies and more. Find your local market and take a visit.
  20. Plan a day trip to somewhere outside your city–it might be the seaside, mountains or another city!
  21. Check out what community events are running in your area and attend one.
  22. Make a birthday present for a friend. Handmade gifts are personal and much more special than anything you could buy from a store.
  23. Attend a play at your local theater. Support your local theater and have a fun night out at the same time.
  24. Volunteer with your local nature conservation society to plant some trees. Conservation societies are always looking for helping hands; do your bit and plant some trees.
  25. Be a tourist in your own city and visit all the popular tourist sites you’ve likely never been to (don’t forget your camera!)
  26. Call a friend you haven’t spoken to recently and have a good long chat.
  27. Put on your favorite song and dance your heart out. You might be surprised at how much fun you have!
  28. Invite some friends over for a BBQ. There’s nothing better than an afternoon spent with good friends and good food.
  29. Try out a new form of exercise like Pilates, tennis or swimming.
  30. Organize a clothing swap with your friends. You’ll have a great time, and save some cash and the environment all at the same time!

Now that you’ve read my list of 30 new things to try today, my question for you is, “what new things will you try today?”

Featured photo credit: Unsplash via unsplash.com

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