More Car Insurance Myths

Filed in archive Information About on May 30, 2010

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It often is amazing when you consider some myths that have been believed for so long by so many. Of course, one way to eliminate myths of any kind is to provide an abundance of good information. This applies to car insurance, too. Here are some more myths still going around:

My Car Insurance Will Pay My Balance If My Car Is Totaled

An auto insurance company will not pay off the balance of your car payments if your vehicle is totaled. The truth is that they will only pay the value of your car minus any depreciation that has occurred. Since depreciation can occur rather rapidly, you could still owe quite a bit of money, especially if it is a new car. This is what GAP insurance is for. The only kind of car insurance that will pay for the balance is called replacement insurance, which will give you a vehicle similar to the one you purchased. It is considerably more expensive.

I Am Not Responsible If Someone Else Is Driving My Car

This is another myth. The truth is that you are responsible for anyone driving your car. Your insurance does cover them and it will affect your insurance rates if they get in an accident. If you do not think you can trust an individual to drive your car responsibly and still want to keep you affordable car insurance, you better just say no.