7 Car Insurance Myths You Should Know

Everyone needs to have car insurance, but almost no one enjoys shopping for it or paying for it. Car insurance is expensive and can be confusing. The last thing you want when looking for new car insurance is to get swept up on all the rumors online.

To help you avoid falling for a myth, here are a few common ones debunked.

Red car close-up

Myth #1: Red cars have more expensive insurance

You’ve most likely heard at some point that people who drive red cars are more likely to get tickets. The bright color is hotly debated about whether or not it gets more attention from cops. Following the rumor, many also say that owners of red cars pay more in insurance than cars of other colors.

Certain color cars aren’t charged more than others for insurance, but different car models do have different insurance costs. Red cars that have gotten tickets more often could see a rise in their rates because of that. If you’re looking at switching to a red car, don’t let insurance rates hold you back.

Myth #2: Older drivers pay more in insurance

Life insurance gets more expensive as you age, and many people assume that car insurance does too. The truth is almost the complete opposite of that. It’s more common for younger drivers to get charged more for auto insurance.

Young drivers are new drivers, and they’re more likely to get in an accident than an older, more experienced driver. Older drivers can actually get discounts if they have a record of good driving. Additionally, older retirees can get discounts on their insurance because they won’t be driving as often as people in the workforce.

Myth #3: Whoever is driving the car will pay for damages

Auto insurance doesn’t follow a driver wherever they go. If you lend your car to a friend who gets it into an accident, it’ll be your insurance that’s being used, not theirs. In most states, insurance for the vehicle involved is the primary insurance. Because of this, you should be very careful about letting others borrow your car.

Excellent credit score

Myth #4: Credit score doesn’t affect car insurance

You know that your credit score affects your loan and other types of insurance, but many assume that your car insurance is always separate from your credit score. Like with most things, credit score does also impact car insurance. Insurance companies do take a look at your credit-based insurance score to see how likely you are to file a claim in the future. If you can show that you’re good at managing your finances, you could get a lower cost for your insurance.

Myth #5: Car insurance always rises after a claim

Everyone says that once you file a claim, your insurance will automatically rise. This is easy to believe, but it’s not true.

Many people are afraid of filling a claim just because of the thought that they’ll have to pay more. In some cases, your rates might not raise at all if you file a claim. Insurance companies will take a look at the severity of your situation, a rock chipping your windshield and you causing an accident are two very different scenarios.

If you have a history of good driving, your insurance company might not touch your rates. They’ll also look into who’s at fault so that you’re not getting charged if you did nothing wrong.

Myth #6: You only need the minimum amount of insurance

Some people think that they really only need to get the minimum amount of insurance required in their state. While legally this is fine, it’s not always a smart idea.

You might feel like you’re wasting money on something that you never use, so you want to cut back on your plan. While this will save you money when you don’t need to use insurance, it quickly turns into an awful one the moment you do. By only getting the minimum, you’ll be left will little support if something happens. Your car insurance might even help you afford a car accident lawyer if you get in an accident.

Myth #7: Soldiers pay more than civilians

There are rumors that people in the military get traded more insurance than civilians do. This is also just another car insurance myth. In fact, the truth is almost the complete opposite. Members of the military can actually qualify for discounts on their insurance, regardless of what branch they’re in.

Car insurance policy coverage

So, there you go – seven popular car insurance myths, debunked.  So, which myth that you still believe as you read this article? Please share your thoughts on it.