“Red cars cost more to insure.”Colour has zero effect on rates; insurers evaluate make, model, engine size, repair costs, safety ratings, and driving history.
“Full coverage / Comprehensive covers everything.”“Full coverage” does not exist as a single blanket policy. Comprehensive covers non-collision events (theft, fire, weather, vandalism), but excludes routine mechanical breakdowns, wear and tear, and collision damage.
“If someone else drives my car and crashes, their insurance pays.”Insurance generally follows the vehicle, not the driver. The car owner’s policy acts as primary cover in most cases.
“If the accident wasn’t my fault, my premium won’t change.”Even non-fault claims must be reported and can still affect your overall risk profile, potentially raising renewal rates or altering discounts.
“If my car is written off, insurance buys me a brand-new car.”Payouts are based on Actual Cash Value (market value minus depreciation) at the time of loss, unless you carry specific gap insurance or new-car replacement add-ons.
“You must use the insurer’s recommended repair body shop.”You have the legal right to choose your preferred registered repair shop, though approved networks may offer warranty perks or direct billing.
“A vehicle must be completely demolished to be declared a total loss.”A vehicle is written off whenever repair costs exceed a predetermined percentage of its market value (typically 60%–80%).
“My personal policy covers me when driving for rideshare or deliveries.”Standard personal auto policies exclude commercial activities, gig-economy work (e.g., Uber, DoorDash), and business use unless a commercial endorsement is added.
“Items stolen from inside my vehicle are covered by auto insurance.”Personal belongings (laptops, phones, luggage) are excluded from auto policies and fall under home or renter insurance.
“Insurance covers mechanical breakdowns and engine failures.”Auto insurance only covers sudden, accidental physical damage, not mechanical failure or general maintenance issues.
“Insurers must use original manufacturer (OEM) replacement parts.”Standard policies typically allow insurers to use certified aftermarket or recycled parts unless an OEM rider was purchased.
“A rental replacement car is automatically included after an accident.”Rental car reimbursement is an optional add-on that must be selected before an accident occurs.
“You do not need to report minor fender benders to your insurer.”Most policy agreements require reporting any accident; failing to report can invalidate future claims if the other party files later.
“Minimum legal liability limits provide adequate coverage.”Statutory minimum limits cover only third-party injury/damage up to low caps, leaving you personally liable for excess balances.
“If you have an accident, you don’t pay the deductible if you’re not at fault.”If you file through your own collision policy, you often pay your deductible upfront until your insurer successfully subrogates the funds from the at-fault driver.
“Having ‘fully comprehensive’ allows you to drive any vehicle with full cover.”“Driving Other Cars” extensions, where present, usually provide only third-party liability cover for the borrowed vehicle.
“A totaled vehicle payout automatically pays off your remaining loan.”If your loan balance exceeds the car’s market value, you remain responsible for the outstanding loan balance unless you have Guaranteed Asset Protection (GAP) insurance.
“The driver who hits another car from behind is always 100% at fault.”While rear-end collisions usually carry a presumption of fault, shared liability or sole fault can fall on the lead car in cases of illegal maneuvers or broken brake lights.
“Insurers are legally liable for the quality of non-network repairs.”If you choose an independent repair facility outside the insurer’s partner network, the warranty and guarantee lie solely with that repairer.
“Declaring a lower mileage or a parent as the main driver has no consequences.”Intentionally misrepresenting vehicle use, annual mileage, or main driver status (fronting) constitutes insurance fraud and can void coverage during a claim.