8 Auto Insurance Myths Explained

Auto insurance myths are everywhere, and they can lead to costly decisions or gaps in coverage that leave drivers vulnerable. At Capps Insurance, we believe in cutting through the confusion and helping our clients make informed choices. If you’ve ever second-guessed what your policy really covers or heard conflicting advice from friends or social media, this guide is for you. We’re clearing up eight of the most widespread auto insurance myths, so you can protect yourself with confidence.

Myth 1: New Cars Are Always More Expensive to Insure

A lot of drivers assume that new cars always mean higher premiums. While newer vehicles can be pricier to repair, they also come with advanced safety features that may qualify for discounts. Factors like theft rates, crash-test ratings, and repair costs all play a role. Sometimes, a well-equipped newer car can actually cost less to insure than an older, riskier model.

Myth 2: Full Coverage Means Everything Is Covered

This is one of the most misleading auto insurance myths. “Full coverage” is not a specific product, and it doesn’t cover every possible scenario. Typically, it refers to a policy that includes liability, collision, and comprehensive coverage. However, you may still need add-ons like roadside assistance, rental reimbursement, or uninsured motorist protection to truly be covered in all the ways you expect.

Myth 3: Your Insurance Automatically Follows the Driver

Many people believe that their insurance will cover anyone who drives their car. In most cases, insurance follows the vehicle, not the driver. If a friend borrows your car and causes an accident, your policy will likely be the one that covers the damages, not theirs. Always check with your agent before lending out your keys.

Myth 4: Older Cars Don’t Need Comprehensive or Collision Coverage

Some drivers drop comprehensive or collision coverage on older vehicles thinking it’s not worth it. While that may be true in certain cases, if your car still has value or you couldn’t afford to replace it out of pocket, maintaining coverage might be the smarter move. Your agent can help calculate the cost-benefit of keeping it on your policy.

Myth 5: Only Bad Drivers Get Higher Rates

Safe driving helps keep your rates low, but it is not the only factor. Insurance companies look at location, vehicle type, annual mileage, and even credit history in some states. Two drivers with clean records can pay very different premiums based on these additional criteria.

Myth 6: You Don’t Need More Than the Legal Minimum

Just meeting your state’s minimum liability limits may keep you street legal, but it likely won’t provide enough protection in a serious accident. Medical bills, legal fees, and multi-vehicle damages can quickly exceed basic coverage. At Capps Insurance, we often recommend higher limits to help protect your financial well-being.

Myth 7: Tickets Drop Off After a Year

Many drivers think a speeding ticket or minor violation disappears after 12 months. In reality, most infractions stay on your driving record for three to five years, depending on your state. That means your rates may stay higher for longer than expected. Safe driving moving forward is the best way to reduce your premium over time.

Myth 8: Filing a Claim Always Raises Your Premium

While some claims do lead to rate increases, not every claim guarantees a higher premium. Minor incidents or claims where you weren’t at fault may have little to no impact. Many insurers also offer accident forgiveness programs. That’s why it’s important to speak with your agent before deciding whether to file a claim.

Takeaway

Falling for common auto insurance myths can cost you more than just money. It can leave you unprotected when you need help most. At Capps Insurance, we make it our mission to educate our clients and ensure they understand exactly what they’re paying for — and why it matters.

Need help separating myth from reality? Let Capps Insurance review your policy and walk you through exactly what your coverage means. We’ll help you build a smarter, more protective plan without the guesswork.