7 Common Car Insurance Myths

You can’t believe everything you hear, especially when it comes to purchasing an auto policy. Car insurance myths and misinformation circulate freely, and figuring out the truth can be confusing. 

Don’t worry, we’re here to help. To help you separate facts from fiction, we explain seven common car insurance myths and why you shouldn’t believe them.

Myth #1: My Car’s Paint Color Impacts My Insurance Premium

What color cars have higher insurance? Is car insurance higher on red cars? If you’ve heard this, rest assured: this common car insurance myth is completely false. The color of your car doesn’t determine your insurance policy’s cost, but other factors do, like your car’s make, model, body type, year and engine size. Although, at least in the case of color, you’re safe, so feel free to get your next car in your favorite color.

Myth #2: I Only Need to Buy the Minimum Auto Insurance Required by Law

Most states require you to carry a minimum amount of auto liability coverage. However, there are some great reasons to consider carrying more than the minimum. Should you be at fault in an accident, you are more likely to pay out-of-pocket for losses you’re liable for. Also, damages to your vehicle won’t be covered if you carry only liability coverage on your vehicle. So, before you believe this car insurance myth, think about protecting yourself, your family and your investment.

Myth #3: My Personal Auto Insurance Will Cover the Business Use of My Car

This car insurance myth is a common misconception, but many believe it anyway. Here’s the truth: If you use your personal car for business, you’ll likely need to purchase business vehicle insurance.

Myth #4: Comprehensive and Collision Insurance Are the Same

Wrong! In fact, comprehensive and collision insurance provide different protections. Comprehensive coverage covers loss due to events such as theft, vandalism, hail, fire and accidents involving animals (such as accidentally hitting a deer on the road). Collision coverage, on the other hand, pays for damage to your car resulting from accidents, whether or not you’re at fault. To ensure you have the coverage you need, make sure you understand what is provided by different coverages.

Myth #5: My Auto Insurance Will Pay Off My Loan or Lease if I Total My Car

This is a myth that can be a big problem. If a loss totals your car, your insurance company will only pay what the market determines your car was worth prior to the accident. This amount factors in depreciation, meaning your car isn’t worth the amount it was when you drove it off the lot. If you have any outstanding amount on the loan or the lease, it’s your responsibility to pay. Ask your local Farm Bureau agent about Loan/Lease Gap coverage, which may help in this situation.

Myth #6: My Auto Insurance Will Cover Mechanical Repairs

Mechanical repairs being covered is a common car insurance myth. Unless the mechanical repairs are needed resulting from a covered accident, your auto insurance won’t cover these costs.

Myth #7: Points on My License Won’t Affect My Insurance

This is a complicated one because technically it’s not the points on your license that raise your rates. Instead, when they’re giving you a quote, insurance companies look into your overall driving record, considering factors like accidents, moving violations (including DUIs) as well as other infractions. Furthermore, each company considers accidents and infractions a bit differently. So, it’s best to think about this as a matter of driving safely and reducing risk, rather than racking up points.

Don’t Fall Prey to Car Insurance Myths

When it comes to purchasing an auto insurance policy, be sure you have the facts. Your local Farm Bureau agent can answer your questions and help ensure you have the right auto coverage in place. Contact us today!