These 5 Auto Insurance Myths Could Cost You Big!

Did you know that “full coverage” doesn’t actually cover everything? Or that lending your car to a friend could put yourinsurance on the line?

Don’t let common myths drain your wallet after an accident. Our latest blog reveals the 5 Auto Insurance Myths that could leave you exposed when you need coverage most.

What “Full Coverage” Really Means
Why State Minimums Aren’t Enough
The Truth About Business Use and Personal Policies

5 Common Auto Insurance Myths That Could Cost You Big!

Think You’re Covered? These Auto Insurance Myths Could Cost You.

Auto insurance is something every driver needs—but too many drivers misunderstand what their policy actually covers. Believing common myths about auto insurance could leave you facing denied claims, unexpected out-of-pocket costs, or even legal trouble after an accident.

At Trusted Choice Insurance Agency, we’re here to make sure you're not caught off guard when it matters most. Here are 5 of the most dangerous auto insurance myths—and the truths that could save you thousands.

1. Full Coverage Means I'm Covered for Everything.

Many drivers believe that if they have “full coverage,” they’re protected against any situation. The truth? “Full coverage” isn’t a standard insurance term. It typically includes liability, collision, and comprehensive coverage—but it doesn’t cover everything.

What’s Missing?

Rental car reimbursement

Roadside assistance

Gap insurance (if you owe more than your car is worth)

Custom equipment or aftermarket parts

💡 Without the right add-ons, you could be left paying for towing, rentals, or loan balances after a total loss.

2. If Someone Else Crashes My Car, Their Insurance Pays.

Wrong. In most cases, insurance follows the vehicle, not the driver. If you let a friend borrow your car and they cause an accident, your insurance is likely the first to pay.

If your coverage isn’t enough to cover the damages, their insurance might step in—but you could still face increased premiums.

Always know who you’re handing your keys to—and ensure your policy limits are sufficient.

3. State Minimum Coverage is Enough.

Sure, carrying the minimum liability insurance keeps you legal—but it doesn’t guarantee financial protection. If you’re at fault in a serious accident, medical bills and property damage can quickly exceed state limits.

When that happens, you’re personally responsible for the difference—risking your savings, assets, or even future wages.

Protect yourself with higher liability limits. It’s often more affordable than you think.

4. Red Cars Cost More to Insure.

This persistent myth has no basis in reality. Insurance companies don’t care about the color of your car—they care about:

Make, model, and year

Engine size

Safety features

Driver history

So go ahead—buy that red car! Just make sure you’re considering factors that actually impact your premium.

5. My Personal Auto Policy Covers Business Use.

If you’re using your car for ride-sharing (Uber, Lyft), deliveries, or other business purposes, don’t assume you’re covered. Most personal auto policies exclude business use.

Without a commercial policy or proper endorsement, claims could be denied—leaving you fully liable for damages.

If you drive for work, talk to us about affordable commercial auto options.

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