Car insurance is something most of us buy and then try not to think about too much. But some surprisingly common myths about how coverage actually works can leave drivers in Kokomo, IN and Westfield, IN paying out of pocket for things they genuinely thought were covered. We hear these misconceptions regularly, and we want to clear a few of them up so you can feel confident you have the protection you actually need.
Myth: The Color of Your Car Affects Your Premium
This one has been floating around for decades. Red cars cost more to insure, people say. The truth is that insurers do not factor in color at all. What they do look at includes things like the make, model, year, engine size, and your driving history. So go ahead and buy the red car if you want it.
Myth: Your Credit Score Has Nothing to Do with Car Insurance
Many drivers are surprised to learn that in Indiana, like most states, insurers can use your credit-based insurance score as one factor when determining your rate. It is not the only factor, and a less-than-perfect score does not automatically mean unaffordable coverage. But it is worth knowing so you are not caught off guard when you shop around.
Myth: Minimum State Coverage Is Usually Enough
Indiana requires drivers to carry a minimum level of liability coverage, and meeting that requirement is a good start. But minimum limits can be exhausted quickly in a serious accident, especially if multiple people are injured or property damage is significant. Once those limits are gone, you are personally responsible for anything beyond them. For many families, carrying higher limits is one of the most practical decisions they can make.
Myth: Comprehensive Coverage Means Everything Is Covered
The word “comprehensive” sounds like it covers everything, which is understandably misleading. Comprehensive coverage actually refers to a specific type of protection for non-collision events like theft, fire, hail, flooding, and hitting an animal. If you want protection for collision damage, that requires a separate coverage type. Knowing the distinction matters, particularly heading into fall when deer activity picks up across central Indiana.
Myth: If Someone Borrows Your Car and Has an Accident, Their Insurance Pays
Generally speaking, car insurance follows the vehicle, not the driver. So if a friend borrows your car and causes an accident, your policy is typically the one that responds first. Their insurance might come into play as secondary coverage, but your deductible and your claims history could both be affected. It is a good thing to be aware of before handing over the keys.
Myth: Older Cars Do Not Need Comprehensive or Collision Coverage
This is partially true in some situations, but it is not a blanket rule. The right call depends on the actual value of your vehicle, how much you rely on it, and what you could afford to replace out of pocket if something happened. For some drivers, dropping those coverages on an older car makes sense. For others, it creates a gap they would rather not have. It is worth having a real conversation about your specific situation rather than going by a general rule of thumb.
Myth: Filing a Small Claim Is Always Worth It
It can be tempting to file a claim any time something happens, since that is what insurance is for. But filing a small claim can sometimes affect your premium more than the payout is worth, depending on your policy and history. Before filing, it is often a good idea to compare the claim amount against your deductible and consider what impact it might have on your rate over time.
Getting the Right Coverage Without the Guesswork
We have been serving drivers and families in the Kokomo, IN area and Westfield, IN and surrounding areas for many years, and these myths come up in conversations more often than you might expect. Part of what we do is make sure you actually understand your policy, not just that you have one. There is a real difference, and it shows when something unexpected happens.
If you have questions about your current auto coverage or want to talk through what makes sense for your situation, please give us a call or drop us an email. We are happy to help.