5 common myths about car insurance
you should know.

The world of auto insurance involves complex variables. Over the years, several myths have been widely accepted as fact, leading to inefficient coverage and unnecessary spending.

Believing these misconceptions can lead to inadequate coverage or overpaying for your policy. Let's debunk five of the most common myths to help you make smarter decisions.

1. Myth: Red cars are more expensive to insure

This is one of the most persistent myths, but it is completely false. Insurers do not factor in the color of your car when calculating your premium. They are concerned with the car's make, model, year, engine size, safety features, and repair costs—not its paint job.

2. Myth: Your insurance covers you if you lend your car

In most cases, insurance follows the vehicle, not the driver. This means if you lend your car to a friend and they get into an accident, it's your insurance policy that will have to cover the damages. Be very careful about who you let behind the wheel.

3. Myth: The minimum state-required coverage is enough

While meeting the legal minimum keeps you compliant, it's often dangerously inadequate. State minimums can be very low. If you cause a serious accident, the costs can easily exceed those limits, leaving you personally responsible for the difference.

4. Myth: A new car implies automatic theft coverage

This is not always true. While a new car's higher value implies better protection needs, standard liability coverage does not cover theft. You specifically need Comprehensive Coverage to be protected against theft, vandalism, or non-collision damage.

5. Myth: Your credit score doesn't affect your rate

In most states, insurers use a credit-based insurance score. Statistical data has shown a correlation between credit history and the likelihood of filing a claim. Maintaining a good credit score is a surprisingly effective way to keep your insurance rates low.