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!