Car insurance is something almost every driver has—but very few fully understand. Thanks to rumors, outdated advice, and social media, there are a lot of car insurance myths floating around.
If you’ve ever thought red cars cost more to insure or that your rates won’t change after an accident, this post is for you.
Let’s bust the 7 most common car insurance myths in 2025 and set the record straight.
🚗 Myth #1: Red Cars Cost More to Insure
Truth: Your car’s color has zero impact on your insurance premium.
Insurance companies care about:
-
Vehicle make/model
-
Year
-
Safety features
-
Theft rate
A red Toyota Corolla and a white one cost the same to insure—unless the red one has a turbocharged engine and the white one doesn’t.
💥 Myth #2: Your Insurance Will Cover Everything in an Accident
Truth: Not always.
If you only have liability insurance, it will only cover damages to others—not your own car.
To cover your car, you need:
-
Collision coverage (accidents)
-
Comprehensive coverage (theft, weather, vandalism)
Check your policy details before assuming you're fully protected.
📉 Myth #3: Your Rates Automatically Go Down When You Turn 25
Truth: Age matters—but so does your driving history.
While many drivers see a drop around age 25, it’s not guaranteed. Your:
-
Accident record
-
Tickets
-
Credit score
-
Vehicle type
…all play a big role. Some 25-year-olds still pay more than careful 21-year-olds.
🧾 Myth #4: You Only Need the State Minimum Coverage
Truth: State minimums are often not enough to cover the full cost of an accident.
Example:
You cause a crash and the medical bills hit $70,000—but your liability coverage only goes up to $25,000. You could be personally sued for the rest.
Spending a little more each month for higher limits = smarter in the long run.
🪞 Myth #5: Your Insurance Covers Items Stolen from Your Car
Truth: Car insurance doesn’t cover personal items inside your vehicle.
If someone steals your phone, laptop, or bag from your car, your car insurance won’t cover it—but your home or renters insurance might.
🔁 Myth #6: Once You File a Claim, Your Rates Will Skyrocket
Truth: Not always. It depends on:
-
The type of claim
-
Who was at fault
-
Your claim history
Many companies forgive your first accident, especially if you’ve been a loyal, safe driver. But frequent claims? That’ll definitely cost you.
🕵️♂️ Myth #7: You Can Lie on Your Application to Get Cheaper Rates
Truth: Dishonesty can get your policy canceled—or worse, denied during a claim.
People sometimes lie about:
-
Where they park their car
-
Who the primary driver is
-
Annual mileage
Insurance companies verify information through accident reports, DMV records, and even telematics apps. If you're caught lying, they can deny coverage and flag you as high risk.
✅ Final Thoughts
When it comes to car insurance, knowing the truth can save you money—and stress.
Don’t rely on what your cousin said or what you read in a Facebook group. Policies change. So do laws. Make sure you're getting your info from trusted sources (like this one 😉).
0 Comments