Car Insurance Misconceptions vs. Reality

two men leaning against pickup truck talking


Buying car insurance that’s right for you can be a challenging task, especially with so many options available. You’ll have to navigate through persisting myths as well, but we can clear some of these up for you.

Misconception: A red vehicle costs more to insure

Reality: If you’re looking for auto insurance for a red car, don’t worry about having to pay more for coverage because of color. Car insurance providers do not factor in color, nor do they ask for that information. Most will, however, take into account such things like model, make, year, and engine size of your car. How many miles you drive each year, where you drive, your past accident history, and even your credit history may be used to determine coverage pricing.

Misconception: Car insurance will pay off my loan if my car is totaled

Reality: Some consumers have outstanding loan balances that are greater than the value of their vehicle; these customers may want to consider purchasing “gap” insurance (coverage that, for an additional charge, will pay the difference between your loan value and the cost to replace your car).

Misconception: Car insurance is “one size fits all”

Reality: Auto insurance can, and should be, customized to each customer’s individual needs.

Misconception: More expensive cars cost more to insure

Reality: The cost of a vehicle does influence the price of insurance but just as important are things like how costly replacement parts are, how many repair specialists there are for a vehicle, etc.

Misconception: Rates automatically go up after a traffic ticket

Reality: Getting a traffic ticket doesn’t automatically mean significant premium increases. However, not all tickets are created equal, either. The following are some premium-busting tickets you’ll want to avoid:

  • DUI
  • Reckless driving
  • Careless driving
  • Speeding
  • Failure to stop
  • Failure to yield to pedestrian
  • Driving in a carpool lane

Misconception: If a friend borrows the car, he or she is responsible for damages

Reality: If you ever decide to let a friend borrow your car, make sure he or she is an experienced driver with a solid driving record. If they do get in a car accident, it may be your insurance that has to cover the damages.