5 Top Car Insurance Myths- Latest and Updated News at One Place

Trying to estimate auto insurance costs can be tricky. Auto insurance companies take quite a few factors into account when determining auto insurance premiums, and the terms and conditions of individual policies can vary quite a bit. To add to the confusion, there are several bits of misinformation about car insurance that are commonly accepted as fact. Here are some of the most common misconceptions about car insurance.

Older Cars are Not Usually Targeted for Theft
There is a common idea that car thieves prefer to steal new vehicles, and that older cars are safe from theft. This is actually not true at all. Car thieves target vehicles that are easy to get into, and cars that have parts that are in high demand. Since many car owners are keeping their cars even after they are paid off, there is currently a large market for parts from older import vehicles. If you are only carrying the minimum insurance required on an older vehicle, you will not be eligible for any reimbursement should the car be stolen.

Auto Insurance will Pay for a Stolen Vehicle, or a Car damaged by Natural Forces
There are three kinds of auto insurance. In most states, liability insurance is auto insurance required by state law. Auto insurance by state may vary quite a bit on specific requirements. Liability means that the insurance company will pay for any liabilities that result from an accident where you are at fault. Collision coverage is optional, and it covers the damage done to your car in an accident. Comprehensive coverage is also optional, and this is the type of insurance that will reimburse you in the event of theft, vandalism. Damage done by hail, fire, or some other accidents is also covered by comprehensive insurance.

If My Car is Stolen, My Insurance will pay for a Rental Car
Not all insurance policies provide for a rental car in the event that your car is damaged or stolen. This type of coverage can be added to most policies. The policy holder should be aware that insurance may not pay for a rental car for the entire period that the policy holder is without a vehicle.

Auto Insurance will pay off a Totaled Vehicle
A car is considered totaled when the insurance adjuster decides that the cost of repairing the vehicle is greater than a percentage of the total current value of the car. Once this determination is made, the insurance company will pay you the current value of the car.

If you owe more than the car is currently worth, you will still be responsible for paying off the remainder of the loan. Gap insurance can be purchased at an extra rate. Gap insurance exists to help you avoid the scenario of having ongoing loan payments for a car that has been totaled.

Drivers of Sports Cars and of Red Cars Pay the Highest Premiums
There is a myth that states that companies charge more to insure a red car than any other color car. The assumption is also made that drivers of sports cars get more speeding tickets than other drivers which increases the premiums they pay. Both ideas are false.

Auto insurance companies do determine premiums based on the model of car you drive. Some models are rated as being at a lower risk for poor driving. Other cars are known to have higher records of speeding tickets, at-fault accidents, and other traffic violations. Only a few of these higher risk cars are sports cars. The color of the car has nothing to do with your premium at all. In most cases, the insurance company will never even ask what the color of a vehicle is.

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Michele Golden is an in your face aspiring blogger and video maker from Vermot. Shes learning how to write better to complete her dream of penning the next great american novel, or news paper column what ever pays the bills.

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