Think red cars cost more to insure? Or that your credit score doesn't matter? These car insurance myths could be draining your wallet—here's what’s true in 2025.
Quick Summary: Outdated advice and widespread myths still confuse millions of drivers. Believing them can lead to higher premiums or inadequate coverage. This article busts the top 10 car insurance myths, backed by real data and expert guidance.
1. Myth: Red Cars Cost More to Insure
Truth: Insurance companies don’t care about color. Rates are based on make, model, year, engine size, and driver history—not paint job.
2. Myth: Your Rate Goes Up Just for Getting a Quote
Truth: Getting a quote doesn’t affect your credit score or insurance rates. Only when you actually change providers might your rate shift.
3. Myth: Older Cars Always Cost Less to Insure
Truth: Sometimes. But older vehicles can lack safety features, making premiums higher. Plus, if parts are rare, repair costs can be higher too.
4. Myth: My Credit Score Doesn’t Affect My Insurance
Truth: In most states (except CA, HI, MA), credit-based insurance scores are used to assess risk. Lower credit = higher premiums.
5. Myth: Only the Primary Driver Impacts the Rate
Truth: All household members with a license may be considered in the risk profile—even if they don’t drive the vehicle regularly.
6. Myth: Comprehensive Coverage Covers Everything
Truth: Comprehensive only covers non-collision events like theft, fire, or hail. It does not mean full protection for every scenario.
7. Myth: Minimum Coverage Is Enough for Everyone
Truth: State minimums are often too low to cover real-life damages. You could be left paying out-of-pocket after an accident.
8. Myth: Switching Insurers Is Risky or Difficult
Truth: It’s not. Most insurers handle cancellations for you and even refund unused premiums. Switching could save you hundreds.
9. Myth: Car Insurance Covers Personal Belongings
Truth: Nope. Items stolen from your vehicle (laptop, bag, etc.) are typically covered by renters or homeowners insurance—not auto.
10. Myth: Tickets Always Raise Rates Immediately
Truth: Many insurers forgive a first minor offense. Or rates may not increase until renewal. Defensive driving courses can also offset points.
Real Example: Believing in Myth #7 Cost John $8,000
Case Study: John in Georgia had state-minimum liability. After totaling someone else’s new SUV, he was personally responsible for $8,000 in damages above his coverage limit. Don’t make that mistake.
💸 Stop Believing Myths — Start Saving on Car Insurance
Many drivers overpay because they trust outdated or false info. See what your premium *should* be with real-time quotes from trusted insurers — no guesswork, no myths.
🔍 Bust the Myths — Compare Real Insurance QuotesFAQs About Car Insurance Myths
Why do so many people believe red cars cost more to insure?
It’s a persistent myth, likely due to red cars being associated with speeding. But insurers don’t use color as a rating factor.
Is it okay to switch car insurance mid-policy?
Yes. You can switch anytime, and many insurers will refund unused portions of your premium with no penalty.