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5 Truths and Myths about Auto Insurance


Auto insurance is a necessary expense for anyone who owns a car, but there are many misconceptions about it that can lead to confusion and even financial hardship. In this article, we’ll debunk five common myths about auto insurance and provide the truth behind them.

1. Myth: Red cars cost more to insure.

Truth: The color of your car has no impact on your insurance rates. What matters are factors like the make and model of your car, its age, its safety features and your driving record.

2. Myth: If you get in an accident, your insurance rates will skyrocket.

Truth: While getting into an accident can impact your rates, it’s not always the case. Your insurance rates will depend on the severity of the accident, who was at fault and your driving history. If it was a minor accident and you have a clean driving record, your rates may not be affected at all.

3. Myth: Comprehensive coverage covers everything.

Truth: While comprehensive coverage does offer extensive protection, it doesn’t cover everything. It primarily covers damages that are not the result of a collision, such as theft, vandalism and weather damage. It’s important to read the details of your policy to understand what is and isn’t covered.

4. Myth: Older cars don’t need collision coverage.

Truth: Even if your car is older, collision coverage can still be valuable. If you get into an accident and your car is damaged, collision coverage will help pay for repairs or the cost of replacing your car.

5. Myth: Your insurance company will automatically cover all damages in an accident.

Truth: Your insurance policy will have limits on what it will cover. It’s important to understand the details of your policy and the coverage limits so you can plan accordingly.


Understanding the truth behind these common myths about auto insurance can help you make informed decisions about your coverage and potentially save you money in the long run. Remember to always read the details of your policy and talk to your insurance broker if you have any questions or concerns.

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