Top 7 Myths About Car Insurance You Should Stop Believing

When it comes to car insurance, there’s a lot of misinformation out there. Believing these common myths can cost you money, reduce your coverage, or leave you unprotected when you need help the most. Let’s bust the top 7 myths about car insurance and set the record straight.

1. Myth: Red cars cost more to insure

One of the most persistent myths is that red cars have higher insurance premiums. In truth, insurance companies don’t care about the color of your car. Your rate is based on factors like the make, model, age, and your driving history—not whether your car is bright red or jet black.

2. Myth: Older cars don’t need insurance

Just because your car is old doesn’t mean it doesn’t need car insurance. In fact, liability coverage is required by law in most places, regardless of your car’s age. Even older vehicles can be involved in accidents or cause damage to others.

3. Myth: Your insurance covers any driver of your car

This is only partially true. While some car insurance policies offer permissive use—meaning others can drive your car occasionally—frequent drivers should be listed on the policy. Otherwise, claims can be denied.

4. Myth: Comprehensive coverage covers everything

Despite its name, comprehensive coverage doesn’t mean total coverage. It only applies to non-collision incidents like theft, vandalism, or weather damage. If you want coverage for car crashes, you’ll also need collision insurance.

5. Myth: Minimum coverage is enough

Many drivers think meeting the state minimum requirements is all they need. However, minimum car insurance coverage often falls short when it comes to paying for serious accidents or legal fees. Consider higher limits or additional types of coverage to better protect yourself.

6. Myth: Your insurance covers personal belongings in your car

If someone breaks into your vehicle and steals your laptop or phone, car insurance won’t cover those items. Instead, personal property losses are typically covered by renters or homeowners insurance.

7. Myth: Insurance follows the driver, not the car

In most cases, car insurance follows the car—not the driver. This means if someone borrows your vehicle and gets into an accident, your insurance will likely be the primary coverage, not theirs.

Stay Informed, Stay Protected

Understanding the truth about car insurance helps you make smarter decisions and avoid costly mistakes. Don’t rely on rumors or outdated advice when choosing coverage—always consult with your insurance provider and ask the right questions.

In summary, don’t let myths about car insurance put you at risk. The more you know, the better you can protect yourself, your car, and your finances.