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Myth #10: When you have not been involved in a car accident, you don't need automobile insurance.

False. Auto insurance is your best protection in the event of an auto accident. Legally, any automobile that you drive is required to have some form of auto insurance, and failing to do so can carry strict penalties.

Myth #9: No-fault insurance means it's not my fault.

False. A No-fault insurance coverage refers refers to the way the insurance company settles a covered auto insurance claim. If a certain coverage is no-fault, responsibility doesn't have to be assigned before an auto insurance claim gets settled.

Myth #8: My insurance rate is set by the government.

False. The government cannot determine your car insurance rate and therefore has nothing to do with how high or low your insurance rate will be. The determining factors of your insurance rate are: Where you live, your credit score, marital status and your driving record is what actually affects your premium.

Myth #7: My credit score does not affect my car insurance rate.

False. Insurance companies take your credit score into consideration when purchasing, changing, or renewing auto insurance coverage.

Myth #6: Males under the age of 25 pay more for auto insurance.

True and False. Males under 25 years old usually pay more for car insurance than female drivers under 25. Teenagers and seniors pay more for auto insurance because they are typically involved in more automobile accidents.

Myth #5: If I just paid for my insurance premium, that covers the new car I just purchased.

Not necessarily. The policy holder must notify the insurance company or agent within a certain number of days if he or she wishes to have the new car covered under the insurance.

Myth #4: The color of my car affects my insurance rate.

False. Your car insurance rate is affected by the vehicle's year, make, model, body type, and engine size, together with your credit history and driving record.

Myth #3: If my friend gets into a car accident with my car that I lent her, my friend's insurance company will pay for the damages

False. Rule of thumb is if it's your car, it's your responsibility. Vven though you weren't even in the car at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.

Myth #2: If my friend gets into a car accident with my car that I lent her, my friend's insurance company will pay for the damages

False. Rule of thumb is if it's your car, it's your responsibility. Vven though you weren't even in the car at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.

Myth #1: My personal auto insurance covers both my personal and business use of my car.

False. If for any reason you use your personal car for business purposes you'll most likely need to expent your personal car insurance policy to cover your business as well.