car insurance myths

Myths about Zeus, Thor, Isis, Ixchel, and the rest of the panoply of pagan deities once provided us with ways to conceptualize the world. Myths about car insurance, on the other hand, obscure the facts, making it hard to truly understand an often-complicated topic.

To help you get the most out of your car insurance policy, we're separating fact from fiction by debunking the most common car insurance myths.

myths about rates

The ways car insurance companies determine rates can be somewhat mysterious, and sometimes it can be hard to know if what you've heard from relatives and friends is true. We're here to dispel some popular misconceptions about factors that affect your rates to help you save on your car insurance policy.

New cars always cost more to insure
On the surface, this idea seems to ring true. But when viewed under our mythbusting microscope, you'll see why new car insurance isn't always more expensive.

Your credit score does not affect your car insurance rate
Whether you're a Suze Orman devotee or a newbie to financial planning, you've probably heard that credit scores affect everything from qualifying for a loan to interest rates. But unless you're in the car insurance business, you probably don't know that credit scores can also affect your car insurance rate. We'll explain why.

Car insurance rates automatically rise after a claim
You've probably heard this one before: Car insurance claims always lead to increased rates. We're here to bust this myth and show you why it isn't always true.

A lapse in car insurance coverage won't affect your rate
It may seem like a smart financial move to let your car insurance coverage lapse when you don't plan to drive (after all, you'll save by not paying monthly premiums), but lapses in coverage can have huge financial ramifications. Find out why when we expose the truths that belie this myth.

myths about cars

Even if you're a car repair superstar, chances are you still might not know whether or not red cars actually cost more to insure. In this section, we break down some common myths about cars (and car insurance).

Red cars cost more to insure
Candy-apple red cars may be eye catching, but they don't cost more to insure. Find out why car colors don't count when it comes to car insurance rates.

Modified car insurance is hard to find
If you're a fan of modified cars, you've probably heard that they're hard to insure. We're here to put an end to that rumor with 2 convenient and affordable modified car insurance options.

Thieves are more likely to steal new cars
If you think that thieves prefer to steal new cars, think again. Read on to find out why this little "factoid" is actually a myth.

myths about coverages

Understanding the fine points of car insurance coverages can sometimes be like deciphering Homer's Odyssey — in Greek. It's often hard to get it all straight and figure out which car insurance rumor you've heard is actually true.

To settle it once and for all, we shed light on some popular myths about car insurance coverage.

"Full coverage" covers everything
What's often called "full coverage" consists of at least 4 distinct coverage options. We'll explain what "full coverage" really means.

Uninsured/underinsured coverages aren't necessary
Everyone likes saving on car insurance, but skimping on vital coverages can be costly in the end. Learn why uninsured/underinsured coverages could be necessary — even when you think you don't need it.

Car insurance follows the driver
True or false? If you lend your car to a friend and your friend crashes your vehicle, your car insurance policy would not have to pay for the damages. If you answered "true," read on to learn why lending a car to a friend also means lending your car insurance.

Comprehensive insurance covers everything
If you have comprehensive car insurance coverage, you'll be covered for a variety of unexpected events. But contrary to its name, comprehensive coverage doesn't actually cover everything. Read on to discover the specifics.

Rental car insurance is always necessary
Chances are you don't need to buy full rental car coverage at the counter. Learn about your options and take the guesswork out of rental car insurance here.

Gap coverage pays for any totaled car
If you're leasing a car or just drove one off the lot, gap coverage is essential. However, in other circumstances, you might not need it, and here's why.

Commercial car insurance is only for big businesses
Some myths are harmless. Others, like this one, can actually hurt you if an accident were to occur. If you drive your car for business reasons, even if you're self-employed, chances are your personal car insurance policy won't protect you in the event of a claim. Read on to learn why commercial car insurance isn't just for big trucking companies.

myths about drivers

Life's big milestones affect everything from your finances to your level of happiness. And, whether you realize it or not, these changes can impact your car insurance needs as well. To help you keep your life aligned with your car insurance needs, we break down some common misconceptions about car insurance and its place through all stages of life.

Having kids doesn't affect your car insurance needs
Sure, the addition of a new family member won't directly impact your car insurance rates, but that new little guy or gal might bring about some changes that will affect your driving needs (and thus your car insurance requirements). If you haven't looked at your policy since you brought the little one home, now might be a good time to reassess your limits, coverages, and deductibles.

Older drivers always pay more for car insurance
Sure, the passage of time may not sharpen your eyesight or reaction times, but when it comes to safe driving, experience can be key. Read on to find out why older drivers don't always pay more for car insurance.

Homeownership doesn't affect car insurance
Homes and cars may seem completely unrelated. But when it comes to car insurance, homeownership (aside from providing your car with a place to spend the night) can impact your car insurance rates.

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