Auto insurance is a complicated subject. You could say many people know just enough about auto insurance to be dangerous. Myths about auto insurance are prevalent. However, with a little learning, you can dismantle any auto insurance myth that leaves you exposed financially or hinders your ability to determine the best auto insurance for your family.
You Will Never Reach Your Car Insurance Limits
The limits associated with your auto insurance coverage impact how much coverage you get with your policy. When many people hear they have a $100,000 limit, they may think they are covered completely with their auto insurance. Unfortunately, sometimes $100,000 isn’t enough coverage, especially if you have multiple cars and multiple drivers. The limit on your auto insurance policy is shared, so if you have a driver that is accident-prone, you may need to increase your coverage to ensure you have enough for other drivers.
Your Loan Will Be Paid Fully After a Total Loss
After purchasing a new car, most lien holders require that you have full coverage. In general, full coverage includes liability, collision and comprehensive insurance coverage. Unfortunately, many people falsely assume that full coverage will automatically pay off their loan if they completely total their car. Your insurance provider will likely send a check for the market value of the car, which could be less than the amount you owe on your loan. Gap insurance is a great option if you think your vehicle will depreciate faster than you can pay off your loan. 
You Are Covered Completely with Comprehensive Car Insurance
Comprehensive insurance is generally the top coverage you can have with car insurance, as indicated by the name of the coverage. In most cases, comprehensive coverage includes liability and collision coverage. However, you aren’t covered by any and every loss that could happen to your car. A list of exclusions prevents many insurance companies from covering every loss possible. To ensure you have the protection you need, read your list of exclusions found within your auto insurance policy.
Your Rate Will Increase if You Get into a Wreck
Although adverse driving can impact that rate you pay for your car insurance, your auto insurance doesn’t automatically increase because you’ve experienced a wreck. If you were in a wreck that wasn’t your fault, then it’s likely your insurance may stay the same.
When it comes to at-fault auto accidents, it’s still possible to avoid a rate increase. If your wreck wasn’t serious and you have a good driving record overall, you may not receive a rate increase.
How Others in Your Household Drive Doesn’t Affect Your Rates
Assuming that household members’ driving records don’t affect your own is a problem. If you live in the same residence, insurance companies assume that other household members will drive your vehicle. As such, your insurance rate could be affected by the fact that your roommate or child with a poor driving history drives your vehicle.
Even though auto insurance is a complicated subject, it’s not rocket science. We encourage you to ask questions about your coverage so that we can help you determine the best auto insurance for your vehicles.