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5 Common Car Insurance Myths Debunked

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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 13, 2022

10 Cheap And Amazing Honeymoon Ideas

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10 Cheap And Amazing Honeymoon Ideas

A honeymoon is important.  The wedding is over.  The months, or even years, of stress and planning are finally over.  It’s time for the two of you to relax, settle in, and start enjoying your time together as you embark on your first journey as a family.

To make the most of this time for the least amount of money, it’s important to focus on what you want out of a honeymoon.  This isn’t your typical list of touristy honeymoon locations everyone goes to.  Rather, it’s a list of cheap honeymoon experiences a couple can enjoy together, regardless of where it’s at.

1. Camping

A week long camping trip is a fantastic way to see how you mesh together as a couple.  You’re put in a low impact “survival” situation where it’s just the 2 of you and nature.  You have a chance to see how your new spouse handles themselves when left with the basics of life.  There are amazing national parks all over the United States where you can camp for a week for $20-30, disconnect from technology, and enjoy some of the natural wonders our nation has to offer.

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2. Staycation

You don’t have to go anywhere for a honeymoon.  In fact, the tradition of taking a honeymoon vacation is a relatively new one.  Prior to the 19th century, a honeymoon involved staying home together for a month to get to know each other physically.  Think of how blissful it could be to take a full month off work, disconnect from the outside world, and focus entirely on projects together.  You may not be wowing your friends and family with pictures of some exotic location, but they’ll be envious of your escape from the rat race nonetheless.

3. Island Getaway

People tend to overspend on their honeymoon vacations to Hawaii, Tahiti, etc.  Going to these places doesn’t have to be expensive.  You don’t need to stay in a 5 star resort when you’re on a Best Western budget.  You’re there to be in the atmosphere of the island, not a hotel room. Book a cheap flight and sleep in a hotel alternative, on the beach or in your car.  It’s the view in paradise that really matters.

4. Fancy Resort

Book an expensive resort, spa, or retreat in the city you live in.  While this may seem counterintuitive as a cheap destination, when you consider your savings on airfare and other travel costs, you can afford to be treated like royalty within your own city limits.  If you book a honeymoon package, you’ll end up with a lot of free amenities and extra attention.  There’s no need to fly halfway across the world to live the good life.

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5. Road Trip

The journey is often more fulfilling than the actual destination.  If you fly out to some exotic locale, you’ll be stuck on a plane for 8-30 hours.  Rent a luxury car, pick a handful of places you each have always wanted to visit, and go on an adventure.  You can keep food costs down by packing your own snacks, but it’s always a good idea to sample the local delicacies wherever you go, even if it’s only a few states over.

6. Charter a Boat

If the ocean is your thing, a week-long cruise can cost you $1500-$3000 per person, depending on the destination.  You also have to factor in travel costs to and from the cruise, alcohol, souvenirs, and on-shore excursions.  You’ll also be surrounded by people.  For the same price (and often much cheaper), you can charter your own boat and enjoy the experience in private.

7. Las Vegas/Atlantic City

If gambling is your thing, these are the places to do it.  Which one you choose depends on your preference, budget, and proximity.  The way to make this vacation cheaper is to gamble smart.  Stay away from low odd tables (i.e craps, roulette) and read up on the MIT blackjack strategies to beat the house.  If you do it right, you can win enough for a free trip (and gain a valuable team skill in the process).

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8. Themed Retreats

There are weeklong retreats all over the world where you can fully immerse yourselves as a couple into a hobby you’re both passionate about.  Go on a yoga/meditation retreat, a ranch, a vineyard/farm, a backpacking adventure, treasure hunt, or whatever you’re into.

9. Working Honeymoon

Your honeymoon doesn’t have to be a vacation.  For a truly memorable experience, dedicate a week to a charity or volunteer organization.  You can drive out to a campground to help restore it in the offseason.  Maybe you’ve always wanted to volunteer to help out your local animal shelter, plant trees, help the homeless, etc.  Use the time to do something together as a couple that will fulfill you spiritually while contributing to the community.  Just because you’re on a honeymoon doesn’t mean you can’t be productive.

10. Festivals, Fairs & Special Events

Every city, state, and country has festivals, fairs, and special events.  Find one you’re interested in.  If you time your wedding right, your honeymoon can be a trip to one of these festivals.  Burning Man, SXSW, Bonnaroo, the Renaissance Fair, regional harvest festivals, Mardi Gras, New Years Eve in Times Square, a movie premiere, or whatever you’re into.  If you plan your honeymoon at the right time in the right place, the possibilities are endless.

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Featured photo credit: Josue Michel via unsplash.com

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