Auto insurance is something almost every driver needs—but it’s also one of the most misunderstood aspects of owning a vehicle. Between advice from friends, internet rumors, and outdated information, it’s easy to fall for myths that can end up costing you more money or leaving you underinsured.

In this guide, we’re breaking down five of the most common auto insurance myths and setting the record straight, so you can make smarter, more informed decisions about your coverage.

Myth 1: Red Cars Cost More to Insure

This is one of the most persistent auto insurance myths out there, and it’s completely false.

Insurance companies do not factor color into your premium. They don’t care whether your car is red, blue, white, or green. What they do care about is:

• The make and model of your vehicle
• Engine size and performance
• Safety features and crash test ratings
• Likelihood of theft
• Your driving record and history

If your red car is a high-performance sports model, you might pay more—but it’s the specs and risk profile of the car, not the color, that affects the price.

When comparing coverage, use tools like Insurify to see exactly what factors affect your premiums, without falling for color-based myths.

Myth 2: Your Insurance Automatically Covers You When Driving Any Car

Many people believe their policy follows them, not the vehicle. While there is some truth to this in certain cases, the reality is more complex.

In most situations, insurance follows the car, not the driver. This means if someone else drives your car and gets into an accident, your insurance is typically the primary coverage, not theirs. There are exceptions, but assuming you’re always covered no matter what car you drive can lead to serious liability issues.

Additionally, if you’re renting a car or borrowing a vehicle frequently, your existing policy might not cover all damages. That’s why it’s important to check your policy in detail.

Looking to upgrade to a policy with better flexibility for different driving situations? Use Affordable Auto Insurance to explore providers that offer more inclusive options.

Myth 3: The Minimum Required Coverage Is Always Enough

Most states require you to carry a minimum amount of liability insurance, but that doesn’t mean it’s enough to fully protect you in an accident.

Minimum coverage often includes:

• $25,000–$50,000 for bodily injury per person
• $10,000–$25,000 for property damage

If you’re involved in a serious accident where damages exceed these limits, you’re responsible for the difference out of pocket. That could mean thousands—or even tens of thousands—of dollars in medical bills, legal fees, or vehicle damage.

Smart drivers carry higher limits, and often add collision, comprehensive, or uninsured motorist coverage to be fully protected. Finance Buzz offers helpful breakdowns on how to build a complete coverage plan that still fits your budget.

Myth 4: Filing a Claim Always Increases Your Rates

This myth is only partially true. Filing a claim can raise your premium—but not always.

If you’re at fault in an accident, or if you file multiple claims in a short period, then yes, your rate may increase. But many insurers offer accident forgiveness programs or claim-free rewards, especially if it’s your first claim or the damage was minimal.

Also, if you’re not at fault in the accident, your rates might not increase at all—though that depends on your state and insurer.

You can find insurers known for forgiving minor claims or offering discounts for claim-free driving by using tools like Insure.com, where you can compare company policies before an accident ever happens.

Myth 5: You Don’t Need Insurance if You Rarely Drive

It might seem like insurance is less important if your car just sits in the garage—but going without coverage is a serious risk.

Even if you drive infrequently, you’re still at risk for:

• Theft or vandalism
• Fire or weather damage
• Being hit while parked
• Loss of registration or legal penalties in states that require continuous insurance

Additionally, having a gap in coverage can raise your premiums in the future—even if you weren’t driving during that time.

If you rarely drive, consider switching to low-mileage insurance or usage-based insurance. These options base premiums on how much you actually drive. Insurify and Affordable Auto Insurance offer tools to help you explore these flexible coverage options and avoid unnecessary costs.

Final Thoughts: Know the Facts Before You Choose Coverage

Myths about auto insurance are everywhere—but believing them can leave you underinsured, overpaying, or unprotected in serious situations. By understanding the facts and choosing a provider that offers clear terms and flexible coverage, you can avoid unnecessary risk and make the most of your policy.

Compare your current plan to better options using trusted platforms like Insure.com, Insurify, and Finance Buzz. Whether you’re busting myths or building a better policy, the right knowledge leads to smarter savings—and stronger protection on the road.