The color of my car determines my auto insurance rate. My credit score has no bearing on my premium. I have auto insurance coverage so my new car is already covered…right?

Maybe not! Below is a list of fallacies many car owners believe and drive by each day. The truth just might make you change course.

Myth #10 "No-fault insurance means, it's not my fault!"
False. No-fault insurance means that your insurance company pays for your damages regardless of who's at fault.

Myth #9 "The color of my car affects my policy rate."
False. The color of your car does not impact your policy rate. What does influence your rate is your vehicle's year, make, model, body type, engine size, credit history and driving record.

Myth #8 "If I lend my car to a friend and that friend is in an accident, his or her insurance company will pay for the damages…right?"
False. Your car, your responsibility! And guess what, even though you weren't present at the time of the accident, you still will receive a mark on your record and your insurance premium could possibly go up.

Myth #7 "My insurance rate is set by the government."
False. The government has nothing to do with the amount you pay for your monthly premiums or the rate that you are given. Where you live, your credit score, marital status and your driving record is what actually affects your premium.

Myth #6 "I recently paid my insurance premium, so the new car I just purchased is covered."
Not necessarily. Most automobile policies require that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is desired for the newly purchased vehicle.

Myth #5 "It's a fact, males under the age of 25 pay more for auto insurance."
True and False. Males under 25 years old can potentially pay more for auto coverage and policies than female drivers. However, across the board, teenagers and mature adults pay more for coverage, due in large part because these age groups are typically involved in more automobile accidents.

Myth #4 "My credit score has no affect on my insurance rate."
False. Your credit score really does matter! Many Insurance companies take your credit score into consideration when deciding to increase or renew your coverage with them.

Myth #3 "Even without comprehensive coverage, I'm still covered for theft, windstorms, hail and deer accidents."
False. Many drivers believe that if they only purchase collision insurance, which covers accidents involving objects, that they will also be covered for incidents that involve vandalism, hail, animal accidents and fires. That simply is not true. You need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all of these situations.

Myth #2 "My personal auto insurance covers both my personal and business use of my car."
False. If you occasionally use your personal car for business purposes such as transporting clients, going to and from meetings or hauling business equipment, then you will more than likely need to extend your personal auto insurance to cover your business use as well. Plus, if your employees use their car while working for you, you will want to also obtain a separate non-owned policy to make sure you are fully covered in every situation.

Myth #1 "I've never had or been involved in a car accident, so I don't need automobile insurance."
False. Some drivers are lucky enough never to have been or to be involved in an accident. However, if by chance you do have an accident, your risk of losing everything is great. Auto insurance coverage is the best protection you can have in the event an automobile accident occurs. It's also a legal issue - you are required, by law, to have some basic form of coverage, and failing to do so carries some fairly strict punishments.

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