Reading all the fine print and asking questions can seem overwhelming, but it's worth the struggle compared to the cost of consequences of misunderstanding your insurance policy. All the legal jargon is a hassle, so clarifying what's true and false about how you'll be evaluated for premium rates will drastically help you. There are a surprising amount of car insurance myths that have become popular. They may come off as though they really make sense, but they can drain your wallet if you believe them.

My zip code doesn't affect my rate

Your location can absolutely affect your rate. Even cities in the same state may differ by thousands of dollars.

Carjackers only steal new cars

Boosters don't steal just to keep for themselves – they'd be at constant risk of getting caught. What they do is sell parts at the local scrap yard, and older parts are in demand. Additionally, liability coverage doesn't cover auto theft by itself — you'd need comprehensive coverage.

Full coverage

"Full coverage" isn't a real term that agents use. What you likely mean is comprehensive and collision coverage. However, if you want the total package (roadside assistance, personal injury protection, etc.) you need to specify that while speaking with your agent.

The color of my vehicle affects my rate

Nope! Police are better able to detect when you're doing something illegal if your car is red compared to the white and black cars surrounding you, but carriers focus on other aspects of your car (make, model, year and engine).

Personal belongings inside the car are covered

Unfortunately, they're not. However, if it's an expensive item stolen from your vehicle during an accident or the process following one, you might be able to file a claim through your home insurance policy.

Make sure you know what's what with your insurance policy before you get into any trouble. Contact Fundy Mutual for an affordable car insurance quote.