Many times car owners think that their car insurance provides much more coverage than is actually the case. Unfortunately, many drivers do not realize just how little their insurance covers until they are in a serious wreck, their car is destroyed or some other serious situation arises. The consequences of not knowing the ins and outs of their auto insurance policy can haunt policyholders long after bruises are healed and the car has been damaged. To avoid remaining in the dark about coverage, here are six myths that will help policyholders understand what is and what is not included in the fine print of their car insurance policy.

Myth 1: I’m covered if a natural disaster strikes and my car is damaged or ruined.

This is simply not true. Sadly, unbeknownst to many car owners, most car insurance policies do not cover natural disasters, such as tornadoes, floods and so forth. (This also means that if your car is vandalized, you probably don’t have coverage). With increasingly severe, unpredictable, and catastrophic weather events – such as Hurricane Sandy in 2012 – that cause widespread, devastating damage, more car owners are finding their automobiles severely damaged or totaled without warning. After this frustrating shock, they quickly learn that their policy does not offer them any sort of relief. But that doesn’t mean you can’t get this covered. If you do wish to buy this type of coverage, you must make sure to ask your insurer about comprehensive and collision coverage.  Furthermore, make sure to carefully go over the terms of coverage with your insurer.

Myth 2: Bright, flashy cars, especially red cars, have higher premium rates for policyholders.

Red cars – or other bright colors – do not increase the premiums. While red cars might attract the attention of a police officer with a radar gun (even if you might not be speeding), it doesn’t cause a stir among insurance companies.

Myth 3: I am covered if I drive my car for business.

If you drive your car for business reasons, and not just personal ones, you are not covered. A self-employed individual does not have coverage if she is driving her car for professional reasons. Personal car insurance does not help if you wind up in an accident or totaling your car. That means, for instance, if you are working for a company that requires you to make deliveries, you will not be covered if you are on the clock, get in a wreck and need your car to be fixed.

Myth 4: My friend borrowed my car and destroyed it. It’s his problem, not mine.

You might think that if someone else is driving your car, it is not your problem if he gets into an accident. This belief is totally false. If you, for example, lend your car to a close friend or family member and she wrecks your car, then that goes on your insurance record.

Myth 5: My car insurance can be canceled by the insurer whenever they see fit.

Again, this conception is totally incorrect. Insurers are not allowed to cancel a policy as a result of state laws that prevent them from doing so. If they had that sort of power, the results would most likely be disastrous. Indeed, if they were allowed to cancel the policy at any time that might mean that serious wrecks, significant damage to automobiles and automobile-related injuries, among other things, would never be covered by automobile insurers.

Myth 6: If I get in a serious wreck and suffer injuries, my car insurance will cover the cost of medical care.

Oftentimes, people assume that full insurance coverage will help pay for medical costs in the event of a serious accident. That is an inaccurate understanding of that language. In most cases, your insurance will not cover medical bills incurred as a result of a wreck.

Myth 7: My credit isn’t good, but that doesn’t matter when it comes to rates for my car insurance.

This is yet another commonly held misconception. Automobile insurers do take your credit into account when determining the rates you will receive for car insurance. If you have poor credit, the rates – naturally – will be higher. That’s why it is important to maintain a good credit rating, so that you don’t have to spend more each month on car insurance rates.

When you are searching for automobile insurance, it is important to understand all the policies and read the fine print when choosing a plan. If you do not understand the details – insurance jargon – make a point to ask questions when choosing automobile insurance. If you do not receive clear cut answers, ask the insurer to simplify their answers. When it comes to purchasing car insurance, it is critical to receive upfront, simple answers. As the saying goes, it’s better to be safe than to be sorry, especially when it comes to knowing what your automobile insurance doesn’t cover.