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Three Things You Need to Forget About Car Insurance

There are a number of helpful resources about finding the best car insurance quote available, especially by reputable business and financial media outlets. And then there are all the urban legends that you have to deal with from friends and family that couldn't be further from the truth. There are three that we'll cover today, and they can cost you hundreds of dollars.

1. Theft Insurance is Critical for New Cars

Car theft coverage may be part of your policy, but it's often used to drum up business by car insurance companies. So with a new car, do you really need to worry about theft as much as a used car? Nope.

There are two reasons at play: one, thieves work with what they know, and used cars are both easier to break into, on average, and are usually easier to hide than a shiny new car. On the other hand, people whose car is a few years older may want to check out comprehensive coverage that could help them pay for a replacement.

2. Rates Are Age-Related Always and Forever

The actuarial tables that car insurance companies use to figure out how much to charge for car insurance include a number of different factors, and it's true that one of them is age. But it's not as clear cut as you might think.

As Progressive reports, there's no age cut-off like being 25 that will cause your car insurance quote to suddenly drop. And at the upper end, it's not necessarily true that older drivers will have to pay more as they near retirement age.

How you drive, including speeding tickets and accidents that you have caused, have a far higher impact on the cost of car insurance. So, too, does where you live, depending on the relative safety of the area.

3. Your Coverage Doesn't Matter If You're Not At Fault

This one is particularly dangerous. It's true that the insurance coverage of the driver at fault in an accident will be the one that pays out healthcare costs and other repair bills for both parties. But that doesn't mean that it will necessarily be enough. After all, doctor's visits can be expensive, and the insurance limits of the other driver affect you, too.

This means that some insurance policies should have underinsured motorist sections, where your insurer will pay the difference between your limits and that of the driver who caused an accident. It may help you recover more quickly, and get your car back on the road.