Auto insurance is a must for anybody wanting to keep their car street legal. Unfortunately, there are a lot of myths and misunderstandings out there when it comes to car insurance. No two driver's car insurance needs are exactly alike, but there are some general facts that every driver should be aware of. Specifically, by understanding the truth behind some common auto insurance myths, drivers can make better informed decisions regarding their own coverage.

Myth 1: Other People Driving Your Car Are Always Covered

So, you decide to let your boyfriend/girlfriend drive your car and end up getting rear-ended. No worries; you should still be covered...right? Not necessarily. Even if your partner carries his or her own auto insurance coverage, that likely doesn't extend to this particular situation. Instead, you'll want to check with your current auto insurance company to make sure that not just you, but any other driver in your vehicle, is covered in the event of an accident.

Myth 2: You Only Need the State-Minimum Coverage Amounts

There are actually some situations in which you may be legally obligated to have more than the state minimum coverage amounts for auto insurance. You see, state minimums are only for liability and personal injury coverage; they don't include comprehensive or collision coverage. If you're financing or leasing your car, then, your lien holder may very well require that you have these additional types of coverage as a means of protecting the investment.

Myth 3: GAP Insurance is an Unnecessary Added Expense

You just bought a brand new car. You drove it off the lot and immediately got into a car accident. You're fine, but the car is totaled. Your insurance company can only cover you for the value of the car at the time of the accident. Unfortunately, the car's value depreciated the second you drove it off the lot, so you owed more on your vehicle than it was worth. With GAP insurance coverage, you can rest assured that in such a situation, your insurance will cover you not just for the depreciated value of the car, but for the total amount still owed.

Myth 4: Credit Plays No Role in Car Insurance Rates

Your driving record isn't the only factor that's taken into consideration when you get a car insurance quote. Your credit score also plays a role; the better your credit history, the more likely you are to receive lower rates and vice versa. Be sure to review your credit report and dispute any errors that could be affecting your insurance premiums.

To learn more about auto insurance, contact an agency like Edwards Insurance Agency.