When it comes to Car insurance, there’s no shortage of myths cruising around out there – some harmless, others potentially expensive. So, let’s put the parking brake on misinformation and set the record straight on the most common Auto insurance myths we hear every day.

Myth #1: Vehicle Color Determines Your Insurance Price

The Truth: Nope, your red-hot sports car isn’t costing you extra just because it’s red.

The color of your vehicle has zero impact on your insurance premium. What does matter? The year, make, model, engine size, safety features, and how expensive it would be to repair or replace your car. So, go ahead – choose the blue one, the yellow one, or even matte black. Your insurer doesn’t care.

Myth #2: Any Insurance Covers Theft, Fire, or Flood

The Truth: Only if you have the right kind of coverage.

If your car is stolen or damaged by fire, a fallen tree branch, or floodwaters – you’ll need Comprehensive coverage.

You’ll need Collision coverage if you hit something (or someone hits you).

Basic liability? That only pays for the damage or injuries you cause to others, not your own car.

Myth #3: The State Minimum Liability Coverage Is Enough

The Truth: That’s a risky shortcut.

Sure, it’s legal – but is it enough? Most state minimums haven’t kept up with the actual cost of modern repairs and medical care. Let’s be real:

• Fender benders can cost $5K+ easily.
• A trip to the ER? Add a few thousand more.
• Rehab, lost wages, pain and suffering? You might blow through your $15K Liability limit faster than your Starbucks app loads.

It’s not just about being legal – it’s about being protected.

Myth #4: If Someone Else Crashes My Car, Their Insurance Pays

The Truth: Usually, the insurance follows the car, not the driver.

So if your friend borrows your car and ends up in a fender-bender, it’s typically your insurance policy that will respond first – not theirs.

The only exceptions are really state-specific or if their policy has special provisions.

Myth #5: If Someone Else Crashes My Car, My Insurance Will Pay

The Truth: Not always.

Many insurance policies exclude drivers who are not specifically listed on the declarations page.

Translation? Just because someone has a license doesn’t mean they are covered to drive your car.

Before tossing your keys to a buddy or roommate, double-check your policy. Learn more about who is covered by your Auto policy.

Myth #6: “Full Coverage” Means You Are Covered for Everything

The Truth: “Full coverage” is an industry nickname – it’s not an all-inclusive protection plan.

Typically, it means you’ve got Liability + Collision + Comprehensive. But that doesn’t mean you are set for:

• Your own injuries
• A rental car while yours is in the shop. Learn how Rental Reimbursement coverage works.
• Towing expenses
• New parts replacement – Some policies only pay for used or aftermarket parts during repairs unless you specifically add Original Equipment Manufacturer (OEM) Coverage, also known as Original Parts Replacement.
• Gap coverage (if your loan is higher than your car’s value). Learn more about insurance for a leased car here.

And remember Myth #3 – your coverage might be “full,” but your Limits may still leave you underinsured.

Bottom Line

Auto insurance is one of those things where what you don’t know can absolutely hurt you.

So skip the rumors and ask your agent (or friendly neighborhood broker 😉) what your policy actually includes – and what it doesn’t.