When it comes to car insurance, there’s no shortage of misinformation out there. From coverage confusion to misconceptions about rates, many drivers believe in myths that could end up costing them money or leaving them underinsured. To make smart decisions about your car insurance, it’s essential to separate fact from fiction.

Starblog debunks five common car insurance myths and gives you the truth so you can drive with confidence and the right protection.

5 Common Car Insurance Myths Debunked

Myth 1: Red Cars Cost More to Insure

One of the most persistent car insurance myths is that owning a red car will make your premiums skyrocket. Many drivers believe that insurers charge more for red vehicles, assuming they attract more attention or are linked to reckless driving.

The Truth: The color of your car has no bearing on your insurance rates. Insurance companies base your premiums on factors like the make, model, age, and safety features of your car, as well as your driving history, location, and how often you use the vehicle. Whether your car is red, blue, black, or white makes no difference. What really matters is the vehicle’s performance and repair costs.

Myth 2: Your Credit Score Doesn’t Affect Car Insurance Rates

It’s common for drivers to assume that their credit score only impacts things like loans or credit card approvals. Many believe that it has no relevance when it comes to car insurance.

The Truth: In most states, insurers do take your credit score into account when calculating your car insurance rates. Research shows that drivers with lower credit scores are more likely to file insurance claims, which is why insurers use credit-based insurance scores to assess risk. Improving your credit score can often lead to lower premiums, so it’s worth keeping your credit in good shape, not just for loans but for car insurance too.

Myth 3: Older Cars Don’t Need Comprehensive or Collision Coverage

Many drivers think that once their car reaches a certain age, it’s no longer worth paying for comprehensive or collision insurance. After all, if your car isn’t worth much, why cover it for damages?

The Truth: While it’s true that older cars depreciate and may not be worth as much, whether or not you need comprehensive or collision coverage depends on more than just the car’s age. If you still rely on your vehicle for daily transportation and can’t afford to replace or repair it out of pocket after an accident, keeping these coverages might be worth the investment. It’s essential to weigh the value of your car against the cost of coverage and the potential risk of having to cover repairs yourself.

Myth 4: If Someone Else Drives Your Car, Their Insurance Covers It

It’s a common misconception that if you let someone else drive your car, their insurance will automatically cover any accidents or damages. Many people believe that the insurance follows the driver, not the vehicle.

The Truth: In most cases, car insurance follows the car, not the driver. That means if someone else is driving your car and gets into an accident, it’s your insurance policy that will be on the hook for the damages—not theirs. While the driver’s insurance may serve as secondary coverage in some cases, you should be prepared for your insurance to take the lead. Always think carefully before handing over your keys and ensure the person you’re lending the car to is a responsible driver.

Myth 5: Minimum State Coverage Is All You Need

Some drivers think that as long as they meet their state’s minimum insurance requirements, they’re fully covered. After all, if it’s legally required, it must be enough, right?

The Truth: While meeting the minimum coverage required by your state will keep you legal, it may not provide enough protection in the event of an accident. Minimum liability coverage is often too low to cover the full costs of a serious accident, including medical bills and property damage. If you’re found at fault in an accident and your coverage isn’t sufficient, you could be held personally responsible for the excess costs. It’s always a good idea to consider increasing your coverage limits or adding additional coverage types, such as uninsured motorist protection, to ensure you’re adequately protected.

Final Thoughts

Understanding the truth about car insurance can save you money and ensure you’re properly protected on the road. While there are many myths out there, it’s important to do your research and speak with your insurance provider about the facts.

By debunking these five common myths, you can avoid costly mistakes, get the coverage you actually need, and drive with peace of mind knowing that you’re fully informed and insured.