Before you start your search for cheap car insurance , you need to separate the myths from reality. Everyone has heard some kind of misinformation about car insurance, at one time or another. Here are the most common car insurance myths you’ll find when you look for discount car insurance.

No-fault insurance means it’s not my fault!

False. The no-fault insurance laws in most states require your insurance company to pay your claim for damages, no matter who’s at fault. Then your insurer contacts the other person’s carrier to be reimbursed if it’s the other persons fault.

If I loan my car to a buddy and he’s in an accident, his insurer pays for the damages.

False. It’s your car and your responsibility! However, your ex-pal’s insurance carrier could come up with excess insurance, if the damages exceed your policy’s limits. To add insult to injury, even though you weren’t there at the accident, that incident will go on your insurance record and instead of cheap car insurance, your rates could go up. You may end up starting a new car insurance search.

I recently paid my car insurance premium, so the new car I just bought is covered.

Mostly false. If you don’t contact your insurance company within a pre-set time limit and ask for a binder, you may be in trouble if there’s an accident. Your insurer has no idea that you just purchased a new $50,000 SUV and they are going to be cranky about paying out any claims. If you don’t notify them in a timely manner, you could be starting that cheap car insurance search again. Your best bet, is to get on the computer or call and contact your insurer right after you pick the new vehicle up.

My credit rating doesn’t effect my insurance rates.

False. Your credit score really does matter, when it comes to car insurance rates! Most insurers take your credit score into consideration. They are like any other business and want to get paid for premiums. If you have a lower credit score, you may have a tough time when you start your car insurance search, or when you want to change, or renew your coverage.

Even without comprehensive coverage, I’m still covered for theft, hail and deer accidents.

False. Too many drivers, when they start looking for cheap car insurance,  believe that if they only purchase collision insurance and liability insurance they’ll be pretty well covered for any eventuality. Comprehensive insurance  covers damage to your car resulting from incidents that involve vandalism, hail, animal accidents, fire and even potholes. You need to purchase both collision and comprehensive car insurance coverage to protect yourself in any of these situations.

My personal auto insurance covers both my personal and business use of my car.

There’s no true or false here, but I’d be very careful and check with your car insurance company. If you use your personal car for business purposes such as transporting clients, going to and from meetings or hauling business equipment, you probably should extend your personal insurance to cover business use. In addition,  if your employees use their car while in the course of business for you, you should obtain a separate non-owned car insurance policy.

I hope your quest for cheap car insurance goes smoothly, now that we have those myths out of the way.