Car insurance can be confusing, and there are plenty of myths that cause drivers to overpay. Are you falling for any of these common misconceptions? Let’s debunk 10 car insurance myths that could be costing you money!
1. Red Cars Cost More to Insure
Many people believe that owning a red car will increase their insurance rates. However, insurance companies don’t base premiums on car color. Factors like make, model, age, engine size, and driving history matter much more. Learn more about how insurance companies determine rates.

2. Full Coverage Means Everything Is Covered
Full coverage usually includes liability, comprehensive, and collision coverage, but it doesn’t cover everything. Things like mechanical breakdowns and personal items inside the car typically aren’t included. Always read your policy carefully.
3. Personal Auto Insurance Covers Business Use
If you use your personal car for business, your standard policy may not cover accidents. You might need commercial auto insurance to ensure proper protection.

4. Minimum Coverage Is Enough
Opting for minimum liability coverage may save you money upfront, but it could leave you paying out of pocket for damages in a major accident. Consider higher coverage limits for better financial protection.
5. Older Cars Don’t Need Comprehensive or Collision Coverage
While dropping these coverages can be a smart move for very old, low-value cars, it depends on your situation. If your car is still valuable, keeping comprehensive and collision coverage could save you thousands in repair costs.
6. Insurance Covers Stolen Personal Items
Car insurance covers the vehicle itself, but it won’t reimburse you for personal belongings stolen from your car. Your homeowners or renters insurance may provide coverage for stolen items.
7. Your Credit Score Doesn’t Affect Your Premium
Many insurance companies use credit-based insurance scores to determine rates. A lower credit score can lead to higher premiums, so maintaining good credit can help you save.
8. No-Fault Insurance Means You’re Never at Fault
No-fault insurance simply means your own insurance covers your injuries, regardless of who caused the accident. However, you can still be found liable for damages to others.
9. Small Claims Won’t Impact Your Premiums
Even minor claims can lead to premium increases. Before filing a claim for minor damage, consider whether paying out of pocket might be a better long-term financial decision.

10. Insurance Follows the Driver, Not the Car
In most cases, car insurance follows the vehicle, not the driver. If you lend your car to a friend and they get into an accident, your insurance may be responsible for covering the damages.
Final Thoughts
Don’t let these common myths cost you money! Understanding how car insurance really works can help you make smarter decisions and save on premiums. Want to find the best auto insurance rates? Compare quotes and talk to a trusted insurance provider today!