When it comes to insurance for car coverage, there are many myths that automobile owners have to sort through.  Unfortunately, some of the most popular insurance for car coverage myths have caused some consumers to make poor choices about their coverage as well as about the vehicles they purchase.  Therefore, it is important to know about these insurance for car coverage myths and how to separate fact from fiction.

Insurance for Car Coverage Myth #1:  Car Color Affects My Insurance Rates 

The color of your vehicle does not have anything to do with the cost of your car insurance.  Rather, the insurance company considers the following factors when determining your rates:

• Credit History
• Driving Record
• Engine Size
• Vehicle Body Type
• Vehicle Make
• Vehicle Model

Insurance for Car Coverage Myth #2:  My Insurance Company is Not Responsible for Damage if I Loan Out My Car

If someone gets in an accident while in your car, it is your insurance company that is responsible if that person gets in an accident.  In addition, covering the cost of this accident will reflect poorly on your insurance record rather than on the person that was borrowing your car.  Therefore, be certain to exercise caution when handing someone else your keys.

Insurance for Car Coverage Myth #3:  My New Car is Covered By My Policy  

Even if you just paid your car insurance premium, it does not necessarily mean that your new vehicle is covered.  Most insurance companies require that you notify them about a newly purchased vehicle within a certain number of days in order to receive coverage for that vehicle.

Insurance for Car Coverage Myth #4:  I am Covered for Theft and Natural Accidents Even if I Don’t Have Comprehensive Coverage

If you want to be covered for things such as theft, hail, windstorms, fires and accidents involving hitting animals, you have to have comprehensive coverage in place.  Collision coverage only covers damage to a vehicle that results from an accident, so you need to have comprehensive coverage if you want your vehicle to be fully protected.

Insurance for Car Coverage Myth #5: Business Use of My Car is Covered by My Policy

Having auto insurance in place does not provide you with coverage if you use your vehicle for business purposes, such as traveling to and from meetings, carrying business equipment or transporting clients.  If you plan to use your vehicle for business purposes, you will need to extend your insurance coverage in order to be certain you are properly covered.

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