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Controlling Your Debt

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Improving Your Score

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Five Auto Insurance Myths That May Cost You

Whether you’re shopping for auto insurance for the first time or you are a current policyholder looking for quotes, you may be operating under some common misinformation. From what your car’s color does to your rates to your credit score’s impact, here are five common false beliefs about car insurance.

Your Credit Score Doesn’t Matter

Auto Insurance

Your credit score, as calculated by the major credit bureaus from information on your credit report, may have an effect on your premium rates, according to the Insurance Information Institute. Your insurer may look at your score and use that information when deciding your rates for the first time or when you renew your policy.

Since having a poor credit score can cost you in many ways, you should work to improve that number prior to applying for insurance or other credit products if possible. If you knew your score was low when you got your auto insurance policy but it has since improved, you should shop around for auto insurance comparison quotes.

The Color of Your Car Impacts Rates

One persistent myth about car insurance is that insurers charge more for ‘risky’ colors, such as red, and less for more mundane hues, such as black and green. But auto insurance companies do not take your car’s paint job into account when setting your premium rates.

Essentially, your car’s model, year, mileage, make, features and likelihood of theft have an impact on your rates. Anti-theft devices, such as remote alarms, can help to knock down the cost of your policy, particularly if you have a model that’s a popular target for thieves.

Your Insurance Covers Everything

You need comprehensive coverage and possibly other areas of optional coverage to get reimbursed for the different things that may happen to your car. Liability, which is what most states require, only covers some costs and your legal liability related to an accident. Other possible events, such as a tree branch breaking your windshield, are not covered by a standard liability policy.

Determining how much and what type of coverage you need depends on a variety of factors, including the value of your car and your financial situation. You’ll have to look at what you can afford to cover out of pocket in case of an unexpected event before electing your coverage types and amounts. You may decide to use sites such as to sell your current car and replace it with a model that is more insurance friendly.

Everyone Driving is Covered

Whether another driver of your car is covered in the event of an accident depends on your policy and applicable state laws. You may have to add other drivers to your policy officially in order for your insurer to cover events with them at the wheel. Speak to your insurer to confirm the requirements for other driver coverage in your area.

Personal Policies Cover Business Use

If you use your personal car for business, you may need to buy additional coverage for business use as part of your personal policy or get a separate policy. Review your policy terms to determine if you have business use protection. Talk to your agent if you need this type of coverage.

Should I Invest in Commodities?

Investing in commodities is traditionally seen as risky, which is why it is important to arm yourself with the correct knowledge. Firstly, you need to know exactly what commodities are and how they are used. It can be hard to classify commodities, due to their diversity. For example, gold is a commodity that is mined from the ground while sugar is harvested. This means that different commodities can have very little in common, both physically and in the way they are used. Due to the nature of commodities, the market can be unpredictable, making it impossible to avoid all risks. There are many factors, such as natural disasters, that can impact commodities, so if you want to profit from your commodity of choice, you have to familiarize yourself with the factors that can influence it. Wherever possible, avoid commodities that are prone to experiencing problems.

Use Reputable Brokers


After familiarizing yourself with your chosen commodity, you can decide what type of investment you want to make. Calculate how much you are able to invest without landing in trouble if you end up with a loss. You should also set aside some money for a good broker to assist you with your investment. Opting for a cheaper broker can seem like an easy way to save cash but can be costly in the long run. Be wary of brokers that promise you guaranteed profit when investing in commodities, as this is rarely the case. A broker that can offer insightful advice on an individual basis might cost more but can help you to navigate some common pitfalls.

You don’t have to use the first broker that you find, so take the time to find one that is not only reputable, but matches your requirements. Doing some background checks to evaluate past results achieved by a broker is always worth the time. Bear in mind that a broker may refuse to work with you if they find any issues with your finances. If you are a newcomer, you should heed the advice of your broker and resist the temptation of over-trading.

Ensure You Can Afford the Risk

There is obviously a chance to profit dramatically from Commodities but, unfortunately, the opposite is more common. Keep an eye on your gains and losses at all times to ensure that your investment remains sound. Commodities can help to diversify your portfolio but should definitely be approached with caution. One of the most appealing things about commodities is that they can act as a hedge against inflation. Your other investments such as stocks and bonds may suffer because of inflation but not commodities.

Because commodities are such a volatile investment, it is recommended that you don’t allocate your entire portfolio to them. Rapid and unpredictable changes in the market can be costly, which is one of the reasons why your broker will want to be sure that you can afford any losses before assisting you. Unless you are prepared to accept some losses while you learn the ropes, it may be better to stick to more stable investments.