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car insurance can be a confusing subject, with plenty of myths and misconceptions surrounding how policies work and what impacts your rates. Believing these myths can lead to poor decisions, unnecessary expenses, or inadequate coverage. Let’s clear the air by debunking the top five car insurance myths.

Myth 1: Red Cars Cost More to Insure
The Truth: The color of your car has no impact on your insurance premium.

One of the most persistent myths is that red cars are more expensive to insure because they are supposedly involved in more accidents or attract more attention from police. However, insurance companies do not consider the color of your vehicle when determining your premium. Factors such as the make, model, year, and safety features of the car, as well as your driving history, are what really matter. Whether your car is red, blue, or white, the color will not affect your insurance cost.

Myth 2: Your Personal Belongings in the Car Are Covered by Car Insurance
The Truth: Car insurance does not cover personal belongings inside your vehicle.

Many people mistakenly believe that if their personal belongings, such as a laptop, phone, or camera, are stolen from their car, their car insurance will cover the loss. In reality, car insurance typically only covers the vehicle itself and its parts. To protect your personal items, you would need a homeowners or renters insurance policy, which often includes coverage for personal property, even when it’s outside your home.

Myth 3: Older Cars Are Always Cheaper to Insure
The Truth: Older cars can sometimes be more expensive to insure than newer models.

While it’s true that the value of a car decreases with age, which can lower the cost of comprehensive and collision coverage, older cars may lack modern safety features. This can lead to higher premiums, as they might be considered riskier to drive. Additionally, some older models might be more prone to breakdowns or require expensive parts that are harder to find, which can also increase insurance costs. It’s always best to compare quotes for both older and newer vehicles before making assumptions about insurance costs.

Myth 4: Your Credit Score Doesn’t Affect Your Insurance Rates
The Truth: In many states, your credit score can significantly impact your car insurance premium.

In most U.S. states, insurance companies use credit-based insurance scores to help determine premiums. These scores are not the same as your regular credit score, but they are influenced by your credit history. Insurers have found that drivers with higher credit scores tend to file fewer claims, so they may offer them lower premiums. Conversely, drivers with lower credit scores may see higher insurance rates. However, some states, like California, Hawaii, and Massachusetts, have banned the use of credit scores in determining insurance rates.

Myth 5: If Someone Else Drives Your Car, Their Insurance Covers Them
The Truth: In most cases, your car insurance follows the car, not the driver.

Many people assume that if they lend their car to a friend or family member, that person’s insurance will cover any accidents. However, car insurance typically follows the vehicle, meaning that if someone else drives your car and gets into an accident, your insurance policy is likely to be the one that covers the damages. This could lead to an increase in your premiums, especially if the driver is at fault. It’s important to understand your policy’s terms and conditions regarding who is covered when driving your vehicle.