Top Car Insurance Myths: How many have YOU fallen for?

2. Driving a red car will raise my auto insurance rates.

Wrong! Car insurance companies are interested in the year, make, model, body type, and engine size of your vehicle. The color may be highly important to you, but your car insurance company doesn’t care if your car is red, blue, black, silver, gold, green, or sunshine yellow.

3. I just backed over my 2,000lb brick mailbox. My homeowners insurance will cover that, right?

Wrong! Your homeowner’s coverage has nothing to do with your auto insurance. In this scenario the only way your car will be covered is if you maintain comprehensive insurance coverage on your car. Even then, it only pays AFTER you pay your deductible.

4. My car insurance will pay if my $1,500 Macbook Air gets stolen from my car.

Wrong! Generally speaking, your car insurance will only pay for items that are attached to the vehicle. It doesn’t cover your personal belongings you leave inside the car. You’ll probably have to file a claim on your homeowners insurance or renters insurance policy to be compensated for personal belongings.

5. If I have a wreck and total my car, my auto insurance will pay off my car loan (or lease).

Wrong! If your car is totaled, your car insurance will pay the actual cash value of your car. The company adjuster will try to find a similar car to yours via Craigslist or the classifieds and THAT will be what you are compensated AFTER your deductible is paid. If your car is worth (in the classifieds) only $5,000 yet you owe $6,000 on it, the insurance company will subtract your deductible from the $5,000 and pay your lender the rest. You have to make up the balance. The only way to avoid this situation is to maintain GAP insurance to pay for this GAP in coverage.

Where to buy car insurance online?

There are a myriad of companies that can provide you with the car insurance you need. Most of them simply need you to fill out a few fields in a simple form to initiate the quote process. And remember, it’s just a quote! You can’t start saving money until you take that first step.

The Hartford (through AARP) has great rates for ANYONE but especially the over 50 crowd. If you’re not that old, don’t worry about it, they can insure you with a great rate even if you’re less than 50 years old and the Hartford is a well respected name in the insurance industry.

Insureme works a lot like LendingTree, shopping your information to a select group of insurers who then give you a quote.

Geico, who doesn’t love the little green lizard … I mean, Gecko? has been coming on strong for the past few years as a significant leader in the online car insurance world.

GoInsuranceRates (has the best rates from companies such as State Farm, Liberty Mutual, Progressive, AllState and Nationwide). You just can’t beat these guys.