Let’s be honest: car insurance is one of those necessary evils in life. We all need it, we all pay for it, but most of us don’t fully understand how it actually works. And because of that, there are a ton of myths floating around about car insurance—many of which could be costing you serious cash. So, let’s set the record straight! Here are the top five car insurance myths you need to stop believing ASAP.
Myth #1: The Color of Your Car Affects Your Insurance Rate
One of the most persistent car insurance myths is that red cars cost more to insure. Maybe it’s because red is often associated with sports cars and aggressive driving, but the truth is, your insurance company doesn’t care about the color of your ride. What they do care about is the make, model, year, engine size, and how likely it is to be stolen. So, if you’re avoiding that cherry-red Mustang because you think it’ll spike your premiums, think again!
Myth #2: Older Drivers Pay More for Insurance
While age is a factor in determining your premium, it’s younger drivers—especially those under 25—who get hit with the highest rates. Insurance companies see younger drivers as riskier because they have less experience behind the wheel. In contrast, older, more experienced drivers often qualify for discounts. That said, once you hit a certain age (usually 70+), some companies may start raising rates again due to potential health-related risks. But for most adults, experience pays off!
Myth #3: Your Personal Insurance Covers Business Use
Do you ever use your car for work—like ridesharing, deliveries, or even running errands for your business? If so, you might assume your personal car insurance has you covered. Unfortunately, it doesn’t. If you’re using your car for business purposes and get into an accident, your personal insurance policy may not cover the damages. Instead, you’ll need a commercial policy or a rideshare-specific policy if you’re driving for Uber or OLA.
Myth #4: If Someone Borrows Your Car, Their Insurance Covers It
This one trips up a lot of people. Many assume that if a friend or family member borrows their car and gets into an accident, the driver’s insurance will cover the damages. In reality, car insurance follows the vehicle—not the driver. So, if you let someone drive your car and they crash it, your insurance is the one that will take the hit. Of course, their insurance might kick in for additional coverage, but your policy is the primary one responsible.
Myth #5: Full Coverage Means You’re Covered for Everything
Ah, “full coverage.” It sounds like a magical umbrella that protects you from absolutely anything that could happen to your car. But full coverage typically just means you have both liability and comprehensive/collision coverage. It doesn’t mean you’re covered for every possible scenario. For instance, things like mechanical breakdowns, regular wear and tear, and even some natural disasters might not be covered. Always read the fine print of your policy to know exactly what’s included.
Conclusion
Car insurance can be confusing, but believing these myths could cost you unnecessary dollars. Understanding how insurance really works can help you find better rates, avoid expensive surprises, and make smarter decisions when choosing a policy. So, next time you hear someone say their red car is costing them more or that their friend’s insurance will cover an accident, you can set the record straight!
