Auto insurance is one of those things we all need but don’t always get. There’s a ton of misinformation floating around, and while some of it sounds harmless, it can quietly cost you money.
If you’re not paying attention, you might be shelling out extra for coverage you don’t need—or assuming you’re protected when you’re actually exposed. Let’s dig into some of the biggest myths and sort out what’s real so you can find the best car insurance for you.
Red Cars Are Pricier to Insure
Ever heard that red cars cost more to insure because they’re ticket magnets? It’s a popular one, but it’s not true. Insurance companies don’t care if your car’s red, blue, or neon green. What they’re looking at is the make, model, engine size, how old it is, and its safety stats. So if you’ve got your heart set on a red ride, go for it—your premium won’t care.
Your Rates Magically Drop at 25
A lot of people swear that turning 25 is the golden ticket to cheaper insurance. Sometimes it helps, but it’s not a guarantee. Age is just part of the picture. What really matters is your driving history. Rack up tickets or fender-benders, and 25 won’t save you. But if you’ve kept it clean, you might catch a break on your rates.
Minimum Coverage Is All You Need
Sticking to the state’s minimum coverage can feel like a budget win—it’s cheap, after all. But it’s a gamble. If you’re in a bad wreck, that bare-bones policy might not even touch the real costs. You could be left covering thousands yourself. Spending a little more upfront could save you a lot of headaches later.
Comprehensive Coverage = Everything’s Covered
“Comprehensive” sounds like it’s got you covered for anything, right? Not quite. It’s got its limits. It handles stuff like theft, hail damage, or that deer that jumps out of nowhere, but it won’t help if you smash into another car or your engine just wears out. It’s not the catch-all people think it is.
Your Credit Score Doesn’t Matter
Here’s a surprise for some: your credit score can mess with your insurance rates in a lot of states. Insurers figure a shaky credit history means you’re riskier to cover. So even if you’re a flawless driver, bad credit might bump up your bill. Keeping your score solid could trim those costs.
Low Mileage Means No Insurance Needed
If you barely drive, it’s tempting to skip insurance altogether. But most states don’t care how little you’re on the road—you still need at least basic coverage. Plus, stuff happens. A short trip can end in a crash, or someone could sideswipe your parked car. No insurance? That’s all on you.
Personal Auto Insurance Covers Business Use
Think your personal policy has you covered while you’re delivering pizzas or driving for Uber? Think again. Most standard policies don’t stretch to business use. Get in a wreck on the job, and your claim could get tossed out, leaving you with a hefty tab. You might need a commercial or rideshare add-on to stay safe.
Every Claim Jacks Up Your Rates
A lot of folks hesitate to file a claim, scared their rates will shoot up. It’s not always the case, though. A small claim where you’re not at fault might not budge your premium. But if you’re filing left and right—especially for stuff you caused—yeah, expect a hike.
Loyalty to One Insurer Means Better Rates
Being loyal to your insurer feels like it should earn you a deal. Sometimes it does, but don’t count on it. Other companies might roll out better rates or throw in extras you’re missing out on. It’s worth shopping around every year or so to see who’s got the best offer.
Full Coverage Means You’ll Be Reimbursed for the Full Value
“Full coverage” sounds like you’re golden, but it’s not what it seems. It just means you’ve got collision and comprehensive tacked onto your policy. If your car’s totaled, you’re not getting back what you paid for it—just its current value. If that’s dropped a ton, you might still owe money on a loan even after the payout.
Final Thoughts
Auto insurance doesn’t have to be a mystery. Falling for these myths can leave you overpaying or underprotected, and nobody wants that. Take a minute to look over your policy, chat with your agent, and shop around for quotes. The more you understand, the better you’ll come out.
