Debunking 9 Common Auto Insurance Myths 

Insurance agent explains the terms of a car insurance policy to a young couple - best car insurance.

What if you made a mistake years ago, and you are stuck paying for it, quite literally, month after month? 

Many drivers are in this exact position when it comes to their car insurance. The more you understand about your policy and coverage in general, the easier it is to get a custom policy and discover what works best for you. Unfortunately, far too many drivers have held onto car insurance myths that lead them to pay too much each month while still not having sufficient coverage. 

Want to get to the truth behind these myths and separate fact from fiction? This guide will walk you through the most common auto insurance myths and the truth behind them. Keep reading to discover everything you need to know. 

Myth 1: The Color Affects Your Premiums 

Does car color affect car insurance? Chances are you grew up hearing that red vehicles cost more to insure. In reality, paint color by itself is not a factor carriers consider when calculating your premium. 

The answer to “Does color affect car insurance?” is an emphatic “no,” but why do so many people still believe this myth? In short, red is a popular color for sports cars, and newer sports vehicles cost more to insure, especially if they have young drivers. Simply having red or any other particular paint color, though, will not drive up your rates. 

Myth 2: Older Drivers Always Pay More 

One of the most prevalent myths about car insurance is that older people always pay more for coverage. This is usually built on the assumption that elderly drivers will receive increased premiums because of their decreased eyesight and other declining faculties. 

However, this is not true until someone achieves an advanced age (typically 75 or older). Until then, older drivers often pay less (sometimes far less) than their younger counterparts. And like all drivers, nothing keeps them from taking driving safety courses or pursuing discounts and bundles that may further lower their coverage. 

Myth 3: Credit Score Does Not Matter Anymore 

Your credit score does not have anything to do with your driving. So, one of the most persistent car insurance myths is that your score does not matter. However, this is only true in a handful of states — if you live in California, Hawaii, or Massachusetts, your score cannot be used to determine your rate. 

It matters in every other state, though, because lower credit scores are considered reliable predictors by the insurance industry of someone getting into a car accident – or failing to pay their bill. While this can be frustrating, there is one upside: Improving your credit score can lower your monthly premium. 

Myth 4: Minimum Liability Equals Maximum Protection 

One of the stranger myths about car insurance is that you only need to have minimum liability protection. Many drivers all around the country think that the minimum policy will cover any damage they are liable for in the event of an accident. However, this could not be further from the truth. 

In truth, minimum liability is just that: the absolute minimum amount of coverage required by your state. If you are liable for damages beyond your limit, then you will be paying for them out-of-pocket. When you take into consideration today’s costs for vehicle repairs and medical bills, the minimum may not come close. For this reason, it is advisable to always get more than the minimum. 

Young woman rubs her neck after a car accident - best car insurance.

Myth 5: Comprehensive Covers the Entire Spectrum 

Just as far too many drivers think minimum liability offers maximum protection, there are others who believe comprehensive policies cover all scenarios. It would certainly offer peace of mind if there was one policy that could cover all eventualities, but this is nothing more than another outdated myth about car insurance. 

In reality, a comprehensive policy will still only protect you against specific covered perils. Even if you have full coverage (which combines liability, collision, and comprehensive), there will be certain scenarios that are not covered. As always, it is important — before relying on your policy — to read the fine print. 

Myth 6: Personal Insurance Extends to Business Use 

These days, many people are entrepreneurs and use their vehicles for work purposes. Many such self-starters simply assume their personal coverage will extend to business use of the car. While this is one of the most common auto insurance myths, it is simply not true. 

Your personal policy will outline exactly what it covers, and that may not extend to scenarios where, say, very expensive work equipment gets damaged in an accident. Be sure to examine your policy and, as needed, take out a separate commercial auto insurance policy to protect your business interests. Remember to brush up on common car insurance FAQs to help you save both time and money. 

Myth 7: New Cars Cost More to Insure, Always 

Many parents buy their teen drivers an older vehicle using the logic that it will be cheaper to insure. This is driven by a belief that newer vehicles will always be more expensive to cover. However, this is not necessarily true. It all depends on the automobile in question. 

Newer vehicles, for example, may have many extra safety features that older vehicles lack. Insuring a moderately priced modern car may actually be cheaper than covering an old beater that lacks those protective features and mostly just offers an airbag and a seatbelt to save lives

Myth 8: Theft, Vandalism and Natural Disasters Are Always Covered 

Plenty of perils face your car even when you are not driving. Someone might break into the vehicle and steal something or simply vandalize the vehicle. And there is always a chance some kind of natural disaster could damage or even destroy your car. All these incidents have one thing in common: Far too many drivers think these things are automatically covered. 

If you really want protection from these threats, you need to add comprehensive coverage to your policy. Even then, you will want to read the fine print to discover what is and is not covered. And if you are disappointed by the limits of your policy, remember this: You can switch carriers at any time to gain better protection at a more competitive cost. 

The Last Myth About Car Insurance? 

Now you know the most common auto insurance myths and the truth behind them. This is the kind of knowledge that can help you protect your automobile and save money. And that leads to the last myth of all: that InsureOne is not a great fit for you and your needs. 

At InsureOne, we specialize in the kind of coverage that offers superior protection at the most competitive prices. Why pay more for less when you could pay less for more? To get started, come get a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. And you are always welcome to come find an InsureOne office near you