Myth 1: Red Cars Cost More to Insure
Truth: The color of your car does not affect your insurance rates. Insurers are more interested in the make, model, year, body type, engine size, the car’s age, and the driver’s history than the color of the vehicle.

Myth 2: Your Credit Score Doesn’t Affect Your Insurance Rate
Truth: In many states, insurers do use credit information to set premiums. Studies have shown that individuals with higher credit scores tend to file fewer claims, making them less risky to insure.

Myth 3: Your Insurance Covers Any Damage to Your Car
Truth: This depends on the type of coverage you have. Liability insurance covers damage to other vehicles and medical costs for injuries you cause to other people. You need collision coverage for damage to your car from accidents and comprehensive coverage for non-collision-related damage (e.g., theft, natural disasters).

Myth 4: Personal Auto Insurance Also Covers Business Use
Truth: Personal auto insurance typically does not cover vehicles used for business purposes. You might need a commercial auto policy if you use your vehicle for work beyond commuting.

Myth 5: All Items Inside Your Vehicle Are Covered
Truth: Personal property inside your vehicle is usually not covered under your auto insurance policy. These items may be covered under your homeowners or renters insurance policy, though.

Myth 6: Older Drivers Always Pay More
Truth: While it’s true that very young and very old drivers can face higher premiums due to higher risk levels associated with these age groups, many insurance companies offer discounts to older drivers, especially those who take defensive driving courses.

Myth 7: The Minimum Legal Coverage Is Enough
Truth: While carrying the minimum legal coverage keeps you legal on the road, it might not be enough to fully protect you financially in the event of a serious accident. It’s often wise to purchase more than the minimum liability coverage.

Myth 8: If a Friend Borrows Your Car, Their Insurance Covers Any Accidents
Truth: Generally, insurance follows the vehicle, not the driver. If a friend borrows your car and causes an accident, your insurance is primary and will cover the damages, subject to your policy’s terms and limits. Your friend’s insurance might serve as secondary coverage if the costs exceed your policy’s limits.