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The Ten Most Common Car Insurance Mythscheap car insurance for young drivers 

It’s easy to believe in car insurance myths especially if no one bothered to know what it is all about. Because of these myths, there are people who don’t bother getting their car insured. According to studies, 14% of Americans have no car insurance and these myths can be one of the reasons why they never bothered to. Here is some car insurance myths that you need to understand.

·   I can use my car for my second job delivering pizza and my insurance policy will cover an accident – this is a wrong understanding on how car insurance policy works. This can only be done if you have bought a commercial car policy that specifically excludes coverage while the covered car is used for business or commercial purposes.

·   I got a ticket and my car insurance premium will increase in double! – one ticket on your driving record will still qualify for the Good Driver Discount however it will depend on the type of ticket you have. Insurance companies have internal point systems that will grade you and configure the risk that your ticket represents.

·   If someone breaks in my car, steals my personal belongings like my laptop, my car insurance will pay me back because I bough full coverage – full coverage does not mean everything is covered. There are specific limits when you say full coverage. This means that there is no insurance policy that can cover everything. So if a personal item got stolen from your car, a claim must be filed through your Renters Insurance or Homeowners Insurance policy. By doing so, you will have to pay the deductible.

·   Credit history has nothing to do with my car insurance rate – actually, some companies take a driver’s credit history account. This is also another way in which they can provide you with an amount to pay for your premium. If you have a low credit score, then there is a chance that you can pay a low premium rate. However, if your credit score is bad, expect a high premium. Remember that credit scores show how you are as a payer.

·   A red car also means high payment of car insurance premium – there are a number of factors affecting your policy. Insurance companies based their rate on your age, driving history, sex, coverage type, car model, make, engine size, car’s safety record as well as it’s potentiality of being stolen. So your car color does not generally affect the amount of premiums you pay.

·   Only the minimum coverage is important – keep in mind that each state requires a minimum level of insurance coverage. This means that there are specific amount of coverage that you need to pay. They vary in every state but these limits are very low but at the same time required. If you don’t get other types of coverage, you may find yourself paying for any damage that might incurred in the event of an accident.

·   My car insurance covers any type of car I drive – every policy is different. Some companies may transfer the minimum state liability requirements while others cover broad coverage policy that transfer your specific liability limits. However there are companies that cover only the specified driver and the rest are excluded from the coverage.

·   If my car is stolen and still unpaid, my insurance will pay the whole loan – this is only true if you bought GAP insurance when you bought your car. But if you have the comprehensive insurance and your car is stolen the insurance company will establish a fair market value of your pre-accident and pay you the actual cash value of your car.

·   My insurance will pay for my rented car – insurance companies don’t pay for rented cars unless you have purchase car rental expense. This coverage is sold only together with your comprehensive and collision coverage.

·   Insurance companies make up prices and charge whenever they want to – the premiums charged to you are calculated and the rates are filed for review and for approval or rejection. So any increase or decrease must be approved first.