Tall Tales About Auto Insurance

If you go online to find out about auto insurance — or even if you ask your friends and coworkers — you're bound to come across some conflicting information. It seems like everyone knows some “secret” that can save you money. The thing is, you're not always getting the real story.

Here are 5 tall tales that get repeated over and over about insuring your car.

Yes No

Red cars cost more to insure than any other color.
While it may be true that the police are more likely to pull over red cars, your insurance company doesn't care what color your car is. The insurance company considers a variety of factors when they set your insurance rates, even including how likely it is to be stolen. But your car's paint job isn't on their list of things to consider.

If someone else is driving your car and gets in an accident, their insurance will cover it.
Unfortunately, this isn't true. It's your car, and your insurance will be responsible for paying the damages. And yes, your premiums will probably go up.

The only thing to worry about is my driving record.
Your driving record plays a big part in setting your rates, but it's not the only factor. Insurance companies also consider the kind of car you drive — some cars cost more to insure than others, no matter how good a driver you are. They also consider your credit report, your age, and whether or not you're married.

Collision coverage will pay for any damage to your car.
Collision coverage only covers damage caused by an car accident. To protect your car from fire, natural disaster, vandalism, or even theft, you need a comprehensive auto insurance policy.

Great drivers don't need insurance.
Actually, in almost every state it’s against the law to drive without insurance. It doesn't matter how clean your driving record — you need coverage before you get behind the wheel.

Hopefully, that clears up some of the misunderstanding about auto insurance. Still have other questions? Talk with an insurance agent. When you use our free online quote service, you'll get matched with professional agents licensed in your area.