3 Car Insurance Myths Drivers Believe Are True

There are a lot of car insurance myths people still think are true. This article will help drivers understand the truth regarding the 3 most common car insurance myths.

1. The color of a car affects its insurance rate

Car insurance companies price insurance policies based on a car’s safety features and its repair and replacement value but never the color. So no, red cars are not more expensive to insure.

2. A standard car insurance policy covers both personal and business use of a car.

A standard car insurance policy most definitely does not cover business use. If you are using a car for business purposes, you must have a commercial auto insurance policy for it.

Rideshare drivers also have to look into rideshare or commercial insurance. Uber and Lyft will only provide insurance while there is a customer paired with a driver or in the actual car. Rideshare drivers are not covered by any type of insurance while they are waiting for passengers unless they have a rideshare or commercial auto policy. 

3. The older you are, the less expensive car insurance is.

This statement is only partially true. After drivers turn 25, their insurance rates will go down. However, these will increase after drivers turn 65.