After spending many years in the insurance industry, we have put together a list of the 10 most misunderstood things about auto insurance. These car insurance myths are some of the most common questions most people have about direct car insurance, whether it’s shopping for or reviewing your car insurance coverage. It’s best to find out now before you have a claim and it’s too late.

• I just got my first speeding ticket, my insurance rates are going to go up a lot.

Reality: If this is your first ticket, your rates probably won’t even change. Most direct car insurance providers will give you a pass if you have no other tickets or claims in the last 3-5 years, depending on the company.

• That new plasma TV I bought last year won’t affect my car insurance

Reality: If you didn’t pay the credit card you loaded it on, then you could. Almost all insurance companies now use some form of credit scoring to determine not only whether you will qualify for insurance, but also what you will pay. There can easily be a 50% difference in rates from one person with excellent credit to another with bad credit.

• I just slammed my car door against my lawn mower parked in my garage, my homeowner’s policy will cover it

Reality: Your owner’s coverage has nothing to do with covering your car. The only way your car will be covered is if you have Comprehensive (Comp) coverage for your car. And only after paying the deductible.

• I just broke my friend’s car and I tell him not to worry, my insurance will cover it

Reality: You will, but only after your friends’ policy pays first. Let’s say your friend has a collision deductible of $ 500 and you have a deductible of $ 250. You would have to give your friend the $ 500 of your deductible, since your insurance company is the main one. Which means your insurance will only pay after your policy limits are exhausted. So remember that in this scenario your deductible, it doesn’t matter, will be based on your friends.

• If you’re riding your bike and you’re hit by a car, your auto insurance won’t get involved

Reality: If you are injured or killed while riding a bike or even walking down the street, you might be surprised to learn that you may be covered by your direct auto insurance policy. If the person driving the car did not have any insurance or did not have enough insurance to cover their injuries, their uninsured or underinsured coverage would pay their claim.

• Someone just broke into my car and stole all my personal belongings i.e Cd’s, cell phone, Christmas presents, my car insurance will pay for it.

Reality: Your car insurance does not cover your personal belongings left inside the car. You will need to file a claim with your homeowner or renter insurance policy to receive compensation for these items. The general rule of thumb is that your car insurance will only pay for items that are attached to the vehicle.

• They are going to charge me more for my car insurance because my car is red, blue, black, pink …

Reality: The color of your car has absolutely nothing to do with your rates. If you like red buy a red car, if you like black buy a black car. Don’t let this nonsense stop you from buying a car.

• I did not have a car for the last 2 years, this will not affect my rates.

Reality: Not having continuous car insurance is frowned upon by most direct auto insurance companies today. Some companies will not penalize you for not having prior insurance. If you don’t have prior insurance, make sure you have a good excuse, like if you took the bus, were in the military, or some other legitimate reason. Oh, and by the way, I couldn’t afford my insurance not on that list.

• Telling a little white lie on my insurance application will not affect my coverage if I ever have a claim.

Reality: This is one of the worst things a person can do. If you lie on your insurance application, chances are you won’t have coverage when you need it most. Do you think they won’t notice? Remember these 2 things when the insurance company is out for a ton of money. # 1 They are going to start asking questions and the first thing they look at is your application. Wouldn’t you if you were them? And reason number 2, insurance companies have more money than God and have people working full time to find out these things.

• Buying a cheaper and more reasonable car will be less to insure a more expensive car.

Reality: There are many different factors that insurance companies use to determine rates, however there are many times when the rate for the most expensive car is less than that for the cheapest car. One of the most important factors for collision and compensation coverage is how much replacement parts cost. Sometimes on those cheaper cars or on the more exotic cars, replacement parts can cost a lot to replace.

So remember the next time you’re looking online for a cheaper insurance policy, consider some of your options. There are hundreds of direct auto insurance companies looking to get into your pocket, just make sure when the time comes you can.

Bryan waldo