Myth 1: Red cars cost more to insure because they get pulled over for speeding more.
Reality: Car color doesn’t affect insurance rates.
Myth 2: If I cause a crash with extensive damages to others, my auto insurance company can cancel me immediately.
Reality: If an insurer wants to cancel a customer due to claims, the company generally has to wait until the policy period is up.
Myth 3: Small cars are the cheapest to insure.
Reality: Small and mid-size SUVs and minivans are generally the cheapest to insure. Small cars are not, often because they’re chosen by more inexperienced drivers who tend to make claims, and because passengers incur more expensive injury claims.
Myth 4: Comprehensive auto insurance covers everything and anything.
Reality: Comprehensive coverage is tragically misnamed. It covers only narrow portions of potential losses, including car theft, storm damage, animal collisions and vandalism.
Myth 5: Thieves prefer to steal new cars.
Reality: It’s more lucrative to steal old cars and sell them for parts.
Myth 6: If my friend borrows my car and crashes it, their insurance will pay for damage.
Reality: Typically, insurance follows the vehicle – NOT the driver.
Myth 7: Out-of-state speeding tickets can’t follow you home.
Reality: Oh yes they can.