5 common myths about car insurance you should know

The world of auto insurance can be confusing, and over the years, several myths have become widely accepted as fact. 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.

Myth 1: Red cars are more expensive to insure

This is one of the most persistent myths, but it's 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.

Myth 2: Your insurance covers you if you lend your car to a friend

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.

Myth 3: The minimum state-required coverage is enough

While meeting the legal minimum for liability coverage keeps you on the right side of the law, it's often dangerously inadequate. State minimums can be very low. If you cause a serious accident, the costs for injuries and property damage can easily exceed those limits, leaving you personally responsible for paying the rest.

"The right insurance isn't about meeting the bare minimum; it's about fully protecting your financial well-being from the unexpected."

Myth 4: A new car is always more expensive to insure than an old one

This is not always true. While a new car's higher value can increase comprehensive and collision coverage costs, it also comes with advanced safety features (like automatic braking and lane assist) that can earn you significant discounts. An older car without these features might be considered riskier in some ways.

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

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