Auto insurance can feel confusing, especially with all the information floating around online. Whether you’re buying your first policy or just want to make sure you’re properly covered, it’s easy to fall for outdated or misleading advice. That’s why we’re debunking five of the most common car insurance myths, so you can make smarter choices and stay protected on the road.
Myth #1: “I Just Bought a New Car, So I’m Automatically Covered.”
Many drivers assume their existing insurance automatically covers a new car for as long as they own it. The truth? Coverage only lasts for a limited time — usually between 7 and 30 days, depending on your policy. If you buy a new or replacement vehicle, you must notify your insurance company right away. Failing to do so could leave your new car uninsured after the grace period ends. And if your new vehicle is more expensive or has different safety features, your premium may change too.
Myth #2: “I Don’t Need Auto Insurance Because I’ve Never Been in an Accident.”
Even the most careful drivers can’t control everyone else on the road. In every state, it’s illegal to drive without auto insurance, and penalties can include fines, license suspension, or even having your vehicle impounded. Beyond legality, insurance protects you financially. One major accident could cost tens of thousands of dollars in repairs, medical bills, or liability claims. Auto insurance ensures you’re not left paying out of pocket for something that wasn’t your fault.
Myth #3: “If My Friend Borrows My Car, Their Insurance Will Cover Any Accidents.”
Here’s a big one: insurance follows the car, not the driver. If someone borrows your vehicle and gets into an accident, it’s your insurance—not theirs—that will likely pay first. It’s also important to note that some policies may provide reduced or no coverage at all, depending on your state and insurance carrier. That’s why it’s important to only lend your car to people you trust and understand what your policy covers. Some insurers limit coverage when non-listed drivers are behind the wheel, so always double-check your policy details before handing over your keys.
Myth #4: “Red Cars Cost More to Insure.”
This myth has been around forever and it’s completely false. Your car’s color doesn’t affect your insurance rates. What does matter are factors like:
- The vehicle’s make, model, and year
- Your driving record and age or years of driving experience
- Location
- How much you use your car
- Coverage limits
So, if you’ve always dreamed of driving a bright red sports car, go for it — the color alone won’t raise your insurance bill.
Myth #5: “Minimum Coverage Is All I Need.”
Minimum limits can fall short quickly after an accident, leaving you responsible for the rest of the costs. For example, if you cause $50,000 in damage but only carry $30,000 in liability coverage per person, you’ll have to pay the remaining $20,000 yourself. That’s why many drivers choose to increase their coverage limits or add protection like uninsured motorist, comprehensive, or collision insurance. Spending a little more each month can save you a lot more in the long run.
The Bottom Line: Don’t Let Car Insurance Myths Leave You Unprotected
Auto insurance isn’t just about compliance, it’s about peace of mind. We help you navigate the tricky landscape of coverage, separating fact from common myths, so you can make confident decisions and avoid costly mistakes down the road. If you’re unsure whether your current coverage is enough, we can help. Give us a call today at (888) 772-4247 to get a personalized quote and make sure you’re fully protected.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
