The color of my car determines my auto insurance rate. My credit score has no bearing on my insurance premium. I have auto insurance coverage so my new car is already covered… right?

Maybe not! Below is a list of fallacies many car owners believe and drive by each day. The truth just might make you change course.

Myth #10 “No-fault insurance means it’s not my fault!”
False. No-fault insurance means that your insurance company pays for your damages regardless of who’s at fault.

Myth #9 “The color of my car affects my insurance rate.”
False. The color of your car does not impact your car insurance rate. What does influence your rate is your vehicle’s year, make, model, body type, and engine size, along with your credit history and driving record.

Myth #8 “If I lend my car to a friend and that friend is in an accident, his or her insurance company will pay for the damages… right?”

False. Your car, your responsibility! And guess what, even though you weren’t present 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 #7 “My insurance rate is set by the government.”
False. The government does not set your car insurance rate. Where you live, your credit score, marital status and your driving record is what actually affects your premium.

Myth #6 “I recently paid my insurance premium, so the new car I just purchased is covered.”
Not necessarily. Most automobile policies require that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is desired for the newly purchased vehicle.

Myth #5 “It’s a fact. Males under the age of 25 pay more for auto insurance.”
True and False. Males under 25 years old can potentially pay more for car insurance than female drivers. However, across the board, teenagers and seniors pay more for auto insurance, in large part because these age groups are typically involved in more automobile accidents.

Myth #4 “My credit score has no effect on my insurance rate.”
False. Your credit score really does matter! Many Insurance companies take your credit score into consideration when deciding to increase or renew your auto insurance coverage.

Myth #3 “Even without comprehensive coverage, I’m still covered for theft, windstorms, hail and deer accidents.”
False. Many drivers believe that if they only purchase collision insurance-which covers damage to your car resulting from driving accidents–that they will also be covered for incidents that involve vandalism, hail, animal accidents and fires. That simply is not true. You need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all of these situations.

Myth #2 “My personal auto insurance covers both my personal and business use of my car.”
False. If you occasionally use your personal car for business purposes such as transporting clients, going to and from meetings or hauling business equipment, then you will more than likely need to extend your personal car insurance to cover your business use as well. Plus, if your employees use their car while working for you, you will want to also obtain a separate non-owned car insurance policy.

Myth #1 “I’ve never had or been involved in a car accident, so I don’t need automobile insurance.”
False. Some drivers are lucky enough never to have been or to be involved in an accident. However, car insurance is the best protection you can have in the event of an automobile accident. It’s also a legal issue. You are legally required to have some form of auto insurance, and failing to do so carries some fairly strict punishments.

To find an auto insurance plan that fits your needs and budget, get free auto insurance rate quotes. You’ll be able to compare car insurance rates from over 12 insurance providers, helping you save time and money on your auto insurance.

To help you compare the savings of each hybrid model, the ACEEE has developed a chart displaying the make, model and estimated tax credit per car.

*These tax credits are estimated. The exact hybrid tax credit amounts will be determined by the I.R.S.

That’s right, starting February 2006; at least one of Insurance.com’s auto insurance partners will be offering hybrid car owners a 10% discount on auto insurance rates. According to preliminary research, hybrid owners tend to fall into a preferred insured category, associating hybrid owners as low risk drivers and therefore warranting lower premiums. Hybrid vehicle sales have at least doubled every year since the first car was offered in 1999. This trend shows no signs of slowing. Auto insurance providers are starting to reach out to serve this growing market group with innovative products to meet the changing needs of their customers.

In the past, hybrid ownership was confined to those attracted to new technologies and the environmentally conscious. However, with the aftermath of hurricane Katrina, where gas prices rose as high as three dollars a gallon, the number of hybrids on the roads has increased. Currently there are over 328,000 registered hybrid vehicles on the road, mostly residing in California, Virginia, Washington, Florida, Los Angeles, San Francisco, Washington, D.C. and New York. And who exactly is driving these money saving automobiles? The hybrid owner profile is married men and women ranging from the age of 41 to 60.

Hybrid tax breaks
In addition to saving money on gas and auto insurance rates, new owners will also benefit from a new federal tax break established for 2006. These tax breaks will come in the form of tax credits, ranging from $3,150 for buyers of the Toyota Prius to $250 for Chevrolet’s Silverado pickup truck, according the American Council for an Energy-Efficient Economy (ACEEE.)

To help you compare the savings of each hybrid model, the ACEEE has developed a chart displaying the make, model and estimated tax credit per car.

*These tax credits are estimated. The exact hybrid tax credit amounts will be determined by the I.R.S.

This tax break won’t last forever. The new tax credit sets a limit of 60,000 hybrids per carmaker. After the manufacturer has hit this mark (based on the quantity of hybrid vehicles manufactured and delivered to dealerships, rather than hybrids actually sold), the credit will begin to phase out over a 15-month period, reducing the chance for those who buy late in the year to receive the same breaks as their fellow hybrid owners received in early 06.

And as always, there are some basic rules that must be met in order to qualify for this money saving tax credit:

• Purchase and take delivery of a qualifying vehicle on or after Jan. 1, 2006.
• Purchase the vehicle new, not used.
• Purchase the vehicle with the intention of using it, not re-selling it.