Myth
I bought "full coverage" so everything's paid for.
Reality
There is no such thing as "full coverage." In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.
Myth
I need three estimates before my wrecked vehicle can be repaired.
Reality
Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that's in an insurance company's "network" of pre-approved shops, you may just have to get an estimate from that shop.
Myth
My insurance premium always increases if I'm involved in an accident.
Reality
It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.
Myth
If I lend my car to someone and he/she crashes it, I'm covered.
Reality
Not so fast. If you or your friend doesn't have optional physical damage coverages, damage to your vehicle generally won't be covered.
Myth
If I buy a new car, my auto insurance company automatically knows and my new car is covered.
Reality
No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.
"Insurance can be complicated," says Chuck Crist of Progressive. "It's not something people deal with every day. So the more informed you are, the better choices you'll make."
To learn more, visit www.progressive.com.
