Miday Insurance Agency

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they're buying. In the rush to feel covered, they can skip the details. That can lead to frustration. Myth: I bought full coverage so everything's paid for. Reality: There is no such thing as full coverage. In most states, only liability insurance is mandatory.

There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation. Myth: I need three estimates before my wrecked vehicle can be repaired. Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that's in an insurance company's network of pre-approved shops you may just have to get an estimate from that shop.

Myth: My insurance premium always increases if I'm involved in an accident. Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.