Auto insurance is something every driver needs, but many people misunderstand how it works. Thanks to word of mouth, outdated advice, and internet misinformation, a lot of myths continue to confuse car owners. Believing these myths could lead you to pay more, get the wrong coverage, or make poor decisions after an accident. Let’s break down the top 5 auto insurance myths and explain what’s actually true.
Myth #1: Red Cars Cost More to Insure
Many people believe that driving a red car automatically raises your insurance premium. The color red is often associated with speed and accidents, which makes this myth sound believable.
The truth:
Car insurance companies don’t care about your car’s color. They focus on factors like the make, model, year, engine size, repair costs, and theft rates. Whether your car is red, blue, or black, the color has no impact on your premium.
So if you love red cars—go for it. Your insurance company won’t charge you more just because you like bold colors.
Myth #2: Your Insurance Follows the Driver
It’s common to hear that car insurance follows the person behind the wheel, not the vehicle. This makes some people think they’re automatically covered when driving someone else’s car.
The truth:
In most cases, insurance follows the car, not the driver. If you lend your car to a friend and they get into an accident, your insurance will usually be the one to pay first. If the damages go beyond your limits, then your friend’s insurance might kick in.
Always think twice before letting someone borrow your car—and make sure they’re a safe and insured driver.
Myth #3: Older Cars Don’t Need Comprehensive Coverage
Some people assume that once a car gets old, it no longer needs full coverage like comprehensive or collision insurance. The idea is that these extra coverages only matter for newer, more valuable cars.
The truth:
Even older cars can benefit from extra coverage—especially if you still rely on the car every day. If your car is stolen, vandalized, or damaged by weather (like hail or a flood), comprehensive insurance will help pay for repairs or a replacement. Without it, you might have to cover all costs out of pocket.
Before dropping coverage, ask yourself: Can I afford to replace or repair this car on my own?
Myth #4: Your Insurance Covers Everything in an Accident
Many people assume that if they have insurance, everything is covered after an accident—medical bills, car repairs, legal costs, rental cars, and more.
The truth:
Auto insurance policies have limits, deductibles, and exclusions. For example:
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Liability insurance covers damage you cause to others, not to your own car.
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Collision insurance covers your car in an accident, but not medical costs.
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Personal injury protection or medical payments coverage is needed for medical bills.
Always read your policy and know what’s included. You might be surprised by what’s not covered.
Myth #5: Minimum Coverage Is Enough
Most states require you to carry minimum liability coverage. This leads many drivers to believe that’s all they need.
The truth:
Minimum coverage only provides basic protection. It often won’t be enough to cover serious accidents. If you hit someone and cause $50,000 in damages but your policy only covers $25,000, guess who pays the rest? You do.
Carrying only the minimum may keep your premium low—but it could cost you a lot more in the long run.
Conclusion
Auto insurance can be confusing, but believing in myths only makes it worse. These five myths often lead drivers to make poor choices, take on too much risk, or pay more than necessary. Now that you know the truth, you can make smarter decisions, stay protected, and even save money.
Remember:
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Don’t worry about the color of your car.
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Know who’s really covered when someone else drives.
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Don’t drop useful coverage just because your car is older.
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Read your policy closely.
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Don’t assume the minimum is enough.
Being informed is the best way to protect yourself on the road.
