Car Insurance Myths and the Truth Behind Them (Debunked)


There are so many myths circulating about car insurance it can be difficult to know which is true and which are false. So, we’ve decided to debunk some of the most common myths about car insurance so you can arm yourself with the truth before you find yourself on the receiving end of a claim and an unexpected fallout.

Here are some of the most common myths about the car insurance and the real-deal truth behind them.

Myth 1: A speeding ticket automatically means your insurance rates will skyrocket.

Truth: With your first speeding ticket there’s a very good chance that you won’t even see a change in your rates at all. You’ll typically get a pass in this case. However, if you get subsequent tickets, you can expect to see a rise in your rates.

Myth 2: My homeowner’s policy will cover will cover mishaps with my car.

Reality: Your homeowner’s policy coverage does not cover your car – it covers only your home. The only instance in which your car will be covered by it (such as if you were to damage your car in your garage) is if you have a comprehensive coverage.

Myth 3: If I’m struck by a car while riding my bike, my car insurance company won’t have anything to do with it.

Reality: That’s not necessarily true. In many cases, you may be covered under your car insurance policy even if you aren’t in your car during the accident and you sustain injuries. Again, this depends on the type of coverage you have.

Myth 4: If someone steals things out of your vehicle, your car insurance will cover it.

Reality: Unfortunately that’s not the case. Your car insurance covers your car, not the contents of it. To file a claim for any loss of personal belongings that may have been stolen from your vehicle, you’ll have to go through your homeowners’ insurance (or renter’ insurance, if you rent your home). In most cases, your car insurance will only pay for the loss of any items that are actually affixed to the car (such as your stereo).

Myth 5: The colour of your car has an influence over how much you’ll pay for insurance.

Reality: Although many people claim that purchasing a car that is a certain colour has sway over your insurance rates, that’s simply not true. Let your preference be your guide when choosing a car colour – not a myth.

Myth 6: A cheaper car is going to be more affordable to ensure than a more expensive one.

Reality: Not necessarily. There are many different factors that go into determining a car insurance rate. One of these considerations is what it would cost to replace or fix damaged parts on the vehicle. Finding replacement parts for an older car can be more challenging, and consequently more expensive, to find. That can make your premiums more expensive. It’s important to use a car insurance comparison tool to find the best deal for you.

There you have it: Some of the most popular car insurance myths and the real truth behind them. Now that you know the truth, you can go into your search for auto insurance armed with accurate information.


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