Auto Insurance Myths Busted: What Drivers Often Get Wrong

When it comes to auto insurance, misinformation abounds. From myths about color affecting your premium to misunderstandings about coverage types, many drivers are making decisions based on half-truths or outdated advice. Believing these myths can cost you money—or worse, leave you unprotected when you need help the most.
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Let’s clear the confusion by debunking some of the most common auto insurance myths so you can make smarter, more informed decisions.

Top Auto Insurance Myths—And the Truth Behind Them

1. Myth: Red Cars Cost More to Insure
Truth:
The color of your car has no impact on your premium. Insurance companies care about make, model, age, engine size, and safety features—not the paint job. That bright red convertible might look faster, but your rate is based on more practical factors.

2. Myth: Minimum Liability Coverage Is Enough
Truth:
While legally required, state minimum liability coverage often isn’t sufficient to cover serious accidents. If damages exceed your limits, you’ll be stuck paying the rest out-of-pocket. Opting for higher limits and full coverage (which includes collision and comprehensive) offers far better protection.

3. Myth: Personal Auto Insurance Covers Business Use
Truth:
Most personal auto policies exclude coverage for commercial use, such as rideshare driving or using your car for deliveries. You’ll likely need commercial auto insurance or a rideshare endorsement to be fully protected.

4. Myth: Older Drivers Always Pay More
Truth:
Insurance premiums are based on driving record, location, and claims history more than age alone. In fact, mature drivers with clean records often pay less than younger, less experienced ones. Many companies even offer senior driver discounts.

5. Myth: My Insurance Follows Me, Not My Car
Truth:
In most cases, auto insurance follows the car, not the driver. If someone borrows your car with permission and gets into an accident, your insurance—not theirs—will usually be the primary coverage.

6. Myth: Comprehensive Coverage Covers Everything
Truth:
Despite the name, comprehensive coverage only protects against non-collision events like theft, vandalism, weather damage, and hitting an animal. To be fully protected, you’ll need both comprehensive and collision coverage.

7. Myth: Insurance Covers Mechanical Failures
Truth:
Auto insurance is not a substitute for a warranty. Mechanical breakdowns, wear and tear, and maintenance issues aren’t covered unless they’re the result of a covered incident, like a crash or flood.

8. Myth: My Credit Score Doesn’t Affect My Premium
Truth:
In many states, insurers use credit-based insurance scores to help determine risk. Studies show a correlation between credit history and the likelihood of filing claims, so your credit can impact your rate (except in states where this practice is prohibited).

9. Myth: Filing a Claim Will Always Raise My Rates
Truth:
Not necessarily. Minor or not-at-fault claims may not result in higher premiums—especially if it’s your first incident or you have accident forgiveness. However, frequent or serious claims are likely to increase your rate.

10. Myth: I Don’t Need Insurance if I Don’t Drive Often
Truth:
Even if you rarely drive, you’re still at risk for theft, vandalism, or damage while parked. Letting your insurance lapse can also result in higher premiums when you decide to get coverage again.


Why Auto Insurance Is Essential
Auto insurance doesn’t just protect your vehicle—it protects your finances, passengers, and legal standing. It covers damage repairs, medical costs, and liability claims, giving you peace of mind every time you hit the road.


Final Tips for Smart Drivers

• Review your policy annually to make sure it matches your current needs.
• Ask your insurer about discounts for safe driving, bundling, or vehicle safety features.
  

At Cordell & Company Insurance Agency , we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (817) 924-4236​. You can also request a free quote by CLICKING HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.