10 Car Insurance Myths Many People Believe

If you have a car, chances are that you have car insurance since most states require it by law. But did you know that there are many myths about car insurance that people mistakenly believe? It’s true. Below are ten car insurance myths that many people believe to be true.

Red Cars are More Expensive

Many people believe that just because they have a red car that they are going to pay more for their car insurance. An insurance company is going to be much more interested in the model, make, body style, location and engine size of the car. However, one thing that does make a difference is the behavior of the driver. Reckless driving and speeding can affect how much you are paying. This is true even if the car is blue. Even though your car’s color is important to you, the insurance companies don’t care.

Thieves Won’t Target Old Cars

This is a big myth. A lot of car thieves go for the older models since they’re much simpler to steal. A report in 2007 reported that the cars that were most stolen were a 1989 Camry, 1991 Accord and 1995 Civic.

There are also suggestions that the type of vehicle that is stolen will vary depending on the state. Texas crooks go for trucks and California thieves go for imported models such as Toyotas and Hondas.

I’ll Be Covered If…

Collision and comprehensive coverage are both optional when you buy your insurance policy. This means you’re not automatically covered if there’s a flood or vandalism that damages your car. Collision and comprehensive usually are needed if you’re financing or leasing the vehicle. After it’s paid for though, this coverage must be requested.

My Credit Score Doesn’t Affect My rate

Most of the insurance companies will factor many things into the rates that they offer. Because a credit score can indicate the way you manage finances, a lot of companies will consider it when you want to change, renew, or purchase insurance.

My Policy Can Be Cancelled Anytime by the Company

Unless you have done something that makes them choose to cancel it, like not paying your premiums or committing fraud, an insurer can’t just cancel your policy.

My Friend’s Responsible When They Borrow My Car

The company will follow your car rather than the driver. That means that if someone is driving your car and they cause an accident, you’re going to be responsible for any kinds of damages.

My Property in My Car’s Covered

If you are in an accident and you have something expensive inside your car, you’re not going to be covered. If you have damage, chances are you’ll have to claim through your renter’s or homeowner’s insurance.

Rental Cars are Automatically Covered

If your car’s damaged or stolen, reimbursement for a rental car isn’t included automatically with the policy. However, it’s something you can add very affordably. Many policies offer it for just $1-$2 each month with an insurance company.

One thing that you should know is that even with the coverage you may have a limit as to the amount of days you’re able to rent that vehicle or the amount allowed for each day towards the costs.

It’s also important to know that you shouldn’t assume your coverage’s going to be enough if you’re paying with your credit card for your transaction. Every credit company offers various exclusions and inclusions. So you should know the fine print so that you’re not stuck with a huge bill.

People who Drive Sports Cars Will Pay More Due to More Tickets

This could be true if you also are under 25 years old or you have a lot of moving violations. But based on a study that was published back in 2009, the people who had a lot of violations were people who drove Hummers, Scions, and Subaru Outbacks.

My No-Fault Policy Means It Isn’t My Fault

The rules for no-fault vary depending on the state. But it means that the other party and you will have coverage for any immediate expenses like lost wages and medical attention and your insurance companies will fight about the cost of the accident.

However, you may have to pay for the repairs and the other damages of the companies decide that you were at fault for the accident.


When you are looking for car insurance, these are the myths that could cost you money if you believe them. Understand what you are covered for and what things aren’t covered. This is going to help you understand how you can get the best insurance policy for your money. Then you can choose the right insurance policy for you and for what you need.

Free Insurance Review

WhitCo Insurance agents provide this free service just for you. Meet with our agents in person or connect online to review your coverage to keep up with your changing insurance needs. If you would like us to explain your insurance policies in pain English, give us a call at 866-298-7608.

We hope you will benefit from our web site and can take advantage of our insurance experience in Punta Gorda and North Port, Florida.