Five Auto Insurance Myths You Should Stop Succumbing To

Most states require drivers to have auto insurance, but what that insurance covers can vary from state to state, from policy to policy, and even from person to person. As a result, you might think your insurance covers what it doesn’t, and this list helps separate fact from fiction.

A complete list from our friends at Your Mechanic can be found at the link below, but here are five main myths they are quickly destroying:

  • Insurance only covers you if you are not at fault . It should be easy, but many people still believe that insurance will not help them if they are to blame for the accident. Nothing is further from the truth (Trust me, I know.)
  • Red cars are more expensive to insure . This is a long-standing myth about auto insurance. In short, it’s not a red car that is more expensive, and in many cases the person who drove to buy a bright red sports car costs more to insure. These bets are more associated with risk than with the color of your vehicle.
  • Auto insurance protects anything that gets stolen from your vehicle . Your insurance may cover damage and repairs to your vehicle from a burglary, but if someone steals your expensive cargo or anything of value from your vehicle, your auto insurance won’t cover that. However, if you have renter or homeowner insurance (and you must), that policy may cover your losses, so be sure to call your insurer.
  • The insurance pays out only the post-total value of your vehicle . Let’s hope you never get into an accident that adds up to your car, but no, your insurance company won’t just pay you what the car costs after the crash (which in many cases costs next to nothing). pay for its pre-crash cost, but be careful – it’s probably not even close to what you might think, or even close to the cost of the Blue Book.
  • The insurance covers mechanical repairs and breakdowns . Again, this is usually what newbies believe, but no – your auto insurance does not cover mechanical failures, wear and tear and other breakdowns that are only part of owning a car. This is why it is so important to find a mechanic you can trust, keep up with preventative maintenance, and learn how to repair yourself. Worse, calling your insurance company over and over again with complaints of mechanical failures will eventually lead to higher premiums.

You can find out more on each of these topics at the link below, as well as some information on where they are not entirely reliable, and what your insurance company might actually cover with one of these umbrellas.

Top 5 Insurance Myths You Shouldn’t Fall For | Your mechanic

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