Most days, you do not have to think about car insurance. It is just something you have for those “just in case” times. When you do need it, though, you don’t want to wonder what type of policy you have. Insurance is complex. Many people have misconceptions about what it is and how it works. Keeping this in mind, realize that you should know everything about your policy to avoid situations when you thought you were protected and really were not.
The following are the five most common misconceptions about car insurance.

1. I thought my policy covered all damage! If you do not have comprehensive auto insurance coverage, you could be paying for more than you think. If you have just basic coverage to keep you legal, your policy will not cover your damage, but just the costs associated with the other driver.
2. Don’t I get a rental car? If you do have comprehensive coverage, know what your policy includes and what it does not. Rental car reimbursement is not always a part of the plan. In many cases, this is a special add on to an insurance policy, not a given.
3. If I wreck the car, I’ll get my money back. Don’t plan to wreck your car and don’t plan on getting all of your money back in terms of what you paid for the vehicle. Depreciation plays a big factor in car insurance. Fair market value of the vehicle at the time of the accident determines what you will receive in the case of a covered accident in which the vehicle is totaled.
4. It was not my fault! Fault is not something that insurance companies or the police decide on too quickly. It is something that needs careful consideration. The determining factors over fault involve the facts and evidence in the case. Your insurance company will determine fault based on these details.
5. My insurance company doesn’t want to help me. Most insurance agents are more than willing to help you to get the money you are owed if you are involved in an accident. They are not trying to downgrade the value of the accident, in most cases. Rather, these agents know the most important factor is keeping you as a client long term.

Car insurance does not have to be expensive, either. You can buy an affordable policy just by comparing the options available to you and choosing a policy that fits your actual needs. Most importantly, spend some extra time reading through that policy before you agree to it!

It’s not that shiny new Lexus that thieves like. It’s that 16-year-old Honda they prefer. That’s according to a list of the most frequently stolen cars compiled by the National Insurance Crime Bureau. The non-profit’s spokesman says he’s not surprised that thieves like the Honda Accord most. “It’s a good car,” Frank Scafidi told MSN. “They sold a lot of them and they stay on the road for a long time. The people who own them tend to take care of them, so that creates a demand for parts. That’s why the thieves like them so much — it’s easy to sell their parts.”

The average age of the cars on the list is 12 years. The oldest? A 1991 Toyota Camry. The newest? The 2009 Toyota Corolla. So why are older cars often a good target for crooks? For one, they’re easier to steal, experts say. Manufacturers didn’t include as many theft deterrents as they do now. Also, they’re less likely to  have added features like tracking and disabling devices.

Scafidi told MSN that many drivers tend to drop comprehensive auto insurance when their cars get older, which he says isn’t necessarily a good idea. Comprehensive insurance will give you the value of the car if it’s stolen so if a thief gets it, you’re left with nothing if you don’t have comprehensive insurance. On a positive note, the report says car theft is down. “Most thieves are just people who want to get from one side of town to the other and can’t figure out the bus schedule,” he told MSN. “They’re looking for cars that have the keys left in them, are parked in a dark place or have been left running while the owner ran inside to get a cup of coffee.”

Here’s the NICB’s list of the most stolen vehicles of 2009:

1. 1994 Honda Accord
2. 1995 Honda Civic
3. 1991 Toyota Camry
4. 1997 Ford F-150 Pickup
5. 2004 Dodge Ram Pickup
6. 2000 Dodge Caravan
7. 1994 Chevrolet Pickup (Full Size)
8. 1994 Acura Integra
9. 2002 Ford Explorer
10. 2009 Toyota Corolla

An insurance executive is now on suspension after being charged with a DUI for driving under the influence. Louis Lower, who’s been at the head of Horace Mann Educators, Corp since 2000, received a 60-day sentence last week according to the Wall Street Journal. Lower received a misdemeanor count of driving under the influence and causing property damage or personal injury, according to records uncovered by The Wall Street Journal.

Horace Mann sells car, home and life insurance policies to primary and secondary school teachers. The company’s board members called a meeting once they were alerted to the charges. The crash happened in Vero Beach, Florida and Lower is scheduled to be released from jail on October 26, the Wall Street Journal reports.

The executive is expected to return to his job in late fall. Meanwhile, Chief Financial Officer Peter Heckman will serve as interim chief executive. “There are no excuses to offer other than a lapse of personal character for which I take full responsibility,” Mr. Lower said in a statement released Monday, according to The Wall Street Journal.

Auto insurance company GEICO unveiled plans to expand their technology reach with apps for the iPad and Android. The GloveBox app will add more features, according to a report by Insurance Technology. “GEICO wants the best experience for our customers at all times,” Dave Weaver, manager of mobile applications, told Insurance Technology. “Our mobile applications for iPad mobile digital devices and Android operating system were built with that in mind.”

Want to pay an insurance bill? There’s an app for that. Want to access insurance ID cards, record accident information, call a GEICO representative or view GEICO videos? There’s an app for that too. The idea is to help consumers through an accident and help them pay their bills. “Instead of simply shrinking our existing website, we reinvented the interaction with our latest applications,” Steve Smith, assistant vice president of GEICO’s Internet business unit, told Insurance Technology.

The company currently insures 16 million vehicles and recently announced they’re hiring hundreds of new workers.

Many auto insurance companies are trying to keep your business by offering perks and incentives. Wondering what all of these things mean? Here are some key auto insurance terms defined:

Accident Forgiveness: In the past, every time you got in an accident your insurance premiums soared and you ended up paying way more. But now many insurance companies are offering accident forgiveness. If you’re in an accident that is your fault, accident forgiveness will protect your driving record and prevent your rates from skyrocketing.

Deductible Rewards: Many insurance companies have realized how annoying it is to be a great driver, but not get any incentive for it. Now with deductible rewards the insurance company will take a certain amount of money off of your Collision deductible every year you go without having an accident.

Safe Driving Bonus: When you don’t get into accidents, the insurance company doesn’t have to spend any money on you. Now some companies are giving you a piece of your money back as a reward for being a safe driver. Every six months to a year they’ll cut you a check if you haven’t had any issues. The amount of the check is usually equal to a small percentage of your premium.

New Car Replacement: This term is just like it sounds. Since cars lose their value so quickly, drivers who totaled their new cars ended up with a bad deal. They’d get the money equal to what their car was worth, which worked out to be a bad deal. Now some auto insurance providers are promising to give you a new car if yours is totaled within the first three years– not just the depreciated value.

Chrysler, which owns GEM, the world’s largest producer of low-speed vehicles says the cars are safe as long as they are on the roads they are intended for. “GEM vehicles offer customers an inexpensive, clean solution for low-speed environments and comply with (the NHTSA’s) standards for low-speed vehicles, which limit the maximum speed of the vehicle to 25 mph,” said Chrysler officials in a USA Today report. “It’s a grave generalization to say that all LSVs are simply souped-up golf carts,” says Mike McQuary, CEO of Atlanta-based Wheego Electric Cars, which manufactures the Whip LSV, according to USA Today.

There are many truths in the insurance world that the average person is not aware of. The problem is that not knowing the ins and outs of various types of insurance can cost you. What you don’t know about insurance could hurt you so start learning everything you need to know.

When you buy a new car the last thing you want to think about is it being damaged, but it happens. The problem is that you have only begun making payments on this car so what if your car is not worth as much as you owe at this point in time? You have heard that cars lose a significant chunk of their value the second you drive them off the lot so what do you do if this happens to you? The answer is gap insurance.

You need insurance to protect you from all the car accidents and other unfortunate events that can happen in life and there are many different types of insurance available. If you do not have at least liability insurance coverage then you could find yourself in a lot of trouble. You could face bills that you cannot pay, and you could even have the wronged party coming after all your assets. These two kinds of liability insurance protect you in certain circumstances that are your fault.

In today’s sagging economic climate, many people are looking for ways to cut corners on their costs and save money, especially those of us who are attempting to rebuild our credit.