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Debunking Some Common Myths About Car Insurance

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For drivers out there, car insurance is one of those things you pay for but hope you never have to use. Unfortunately, there are a lot of myths and misconceptions out there when it comes to auto insurance. By understanding the realities behind these commonly perpetuated myths, you can be a better informed consumer and make wise decisions when it comes to your car insurance coverage.

Myth 1: Insurance Covers Personal Property Inside the Car

If your car is broken into and you have comprehensive coverage, your insurance company will more than likely pay for any necessary repairs related to the break-in. For example, if somebody breaks your car's window to break in, this will likely be covered. On the other hand, your car insurance will probably not cover the replacement of any personal items inside the car that were stolen or damaged. Instead, this would be up to your home insurance or renters insurance policy.

Myth 2: The Color of the Car Influences Insurance Rates

A lot of people seem to believe that the color of your car can actually influence your insurance rates, but this simply isn't true. All other things being equal, a red car isn't going to have higher rates than a black car. What does get factored in when determining auto insurance rates are the make and model, the type of engine in the car, the owner's driving history, and the policy holder's credit history.

Myth 3: State Minimums Are the Only Insurance Requirement

They're called "state minimums," but you might actually be required to carry more than the state minimum coverage to remain street-legal. One common example of where this might apply is when you're making payments on a car (lease or otherwise). In such a case, many lenders will require that you carry full-coverage insurance on the vehicle until it's paid off or until the lease is up. This includes not just state-minimum coverage, but comprehensive and collision insurance as well.

Myth 4: Insurance Covers Personal and Business Vehicle Use

Typically, your standard car insurance policy covers your vehicle only for personal use. Therefore, if you're using your car for conducting business (for example, you're a driver for a ride-sharing company), then you'll probably want to check with your insurance company. You may need to purchase additional coverage (such as an insurance rider policy) to make sure you're protected while using your vehicle for business purposes. Contact a company like LA Insurance for more information.