Common Auto Insurance Myths — And What Drivers Should Really Know

Common Auto Insurance Myths — And What Drivers Should Really Know

By: Eli King | On: December 3, 2025

Introduction: Why Auto Insurance Myths Cost Drivers Money

Auto insurance myths spread faster than real information — and in high-risk areas like South Florida, they can cost drivers thousands. Misconceptions lead people to overpay, choose the wrong coverage, or face huge surprises after a claim. 

Chaisteli Insurance Group focuses on real facts, local risks, and transparent guidance, helping drivers protect their vehicles without falling for myths or sales hype. As an independent agency, we compare multiple carriers, so your decisions are based on truth — not rumors.

Myth #1: “Red cars are more expensive to insure.”

Insurance companies do not rate your premium based on your car’s color. According to the Insurance Information Institute (III), color plays no role in underwriting — insurers care about the vehicle’s safety features, age, repair costs, and your driving history, not whether the car is red, blue, or neon green.

In South Florida — where bright sports cars are common — this myth persists, but the real cost factors are tied to the car’s design, engine, and risk profile. When drivers compare options through our automobile insurance solutions, color is never part of the rate analysis.

Myth #2: “Minimum coverage is enough for most drivers.”

Minimum coverage protects other people, not you. It does not cover your vehicle if it’s stolen, flooded, damaged by a hit-and-run, or ruined in a storm. The Florida Department of Financial Services warns that legal minimums leave drivers exposed to major out-of-pocket losses — especially in hurricane-prone counties.

Key risks minimum coverage does NOT help with:

• Flooding from tropical storms
• Car theft (a major issue in South Florida metro areas)
• Vehicle fires
• At-fault collision damage
• Falling debris during hurricanes

Chaisteli Insurance Group builds protection based on actual risks, not minimums. For a deeper breakdown, many drivers review our guide how much car insurance do I need?, which explains Florida’s unique exposure.

Myth #3: “Older cars don’t need insurance.”

Liability coverage is still mandatory in many situations — and older vehicles are not immune to losses. In fact, older cars are often targeted for theft and are more vulnerable during flooding and storms. Choosing to drop comprehensive or collision may save a little monthly, but it can also wipe out drivers financially when severe damage occurs.

Chaisteli Insurance Group reviews:

• Vehicle age vs. market value
• Local risk factors (storms, crime, coastal flooding)
• Repair costs vs. potential savings
• Whether keeping extra coverage is worth it

Drivers adjusting coverage on aging vehicles often ask what proofs they need — our guide to car insurance documents helps clarify requirements based on policy type.

Myth #4: “Your credit score doesn’t affect what you pay.”

Many insurers in Florida use credit-based insurance scores as part of their rating formula. Research summarized by the National Association of Insurance Commissioners (NAIC) shows a strong correlation between credit behavior and claim likelihood.

What this means for drivers:

• Good credit often lowers premiums
• Poor credit can raise them, even with a clean driving record
• Credit is one factor — not the only one
• Improving credit can reduce renewal rates year-over-year

Chaisteli Insurance Group helps clients understand quote differences across carriers and how credit impacts eligibility, pricing, and discounts.

Myth #5: “Your rate automatically goes up after every accident.”

Not necessarily. Your rate depends on fault, the type of claim, severity, and your past driving history. A small not-at-fault accident often has no impact on your premium. Florida’s no-fault structure — PIP coverage — also separates medical payments from liability claims, which affects whether an insurer adjusts your rate.

What may increase a rate:

• Multiple at-fault accidents
• Large payouts
• A pattern of frequent claims

If a carrier raises your premium unfairly, the agency can compare plans across multiple insurers to help you avoid unnecessary price hikes.

Myth #6: “You’re covered when driving someone else’s car.”

Auto insurance typically follows the car, not the driver. If the vehicle owner has limited or poor coverage, you may be legally responsible for damages the policy doesn’t cover. Some insurance extends limited “permissive driver” coverage, but it varies significantly.

Drivers who borrow, rent, or frequently use rideshare cars may need additional protection — such as a non-owner policy — which can be recommended based on driving habits and exposure.

Myth #7: “Full coverage means everything is covered.”

“Full coverage” is not an official insurance product — it simply means you carry liability, comprehensive, and collision. You may not have:

• Roadside assistance
• Rental car reimbursement
• Gap insurance
• Coverage for personal belongings
• Custom equipment protection
• Increased limits for storm debris or flooding events

In Florida’s extreme-weather environment, these add-ons can make or break your protection. Guidance is often needed to define what “full coverage” should include for a driver’s lifestyle and budget.

Myth #8: “Insurance will replace your car at its original value.”

Most auto policies pay Actual Cash Value (ACV) — the depreciated value at the time of the loss. Cars lose value quickly, and the payout may be far lower than expected. The Insurance Information Institute notes that ACV is standard unless you add replacement-cost or gap coverage.

In South Florida, where hurricanes can total vehicles in minutes, understanding ACV matters. Experts typically review:

• Depreciation patterns
• Loan/lease balance
• Risk of total loss
• Whether gap or replacement-cost coverage is needed

Myth #9: “Shopping for insurance hurts your credit score.”

Insurance quoting uses soft inquiries, which do not affect your credit score. NAIC confirms that insurance companies do not use hard pulls when giving quotes.

This means:

• You can compare as many quotes as you want
• Your score won’t drop from shopping
• The agency can compare multiple carriers on your behalf without affecting your credit in any way

How Chaisteli Insurance Group Helps Drivers Avoid These Myths

Chaisteli Insurance Group protects drivers from misinformation by offering:

• Multiple carrier comparisons to ensure fair pricing
• Personalized recommendations based on local South Florida risks
• Transparent coverage education — no jargon, no assumptions
• Claims support when something unexpected happens
• Local expertise for storms, flooding, and theft patterns
• Easy access to quotes, including our streamlined quick auto quote option

Every policy is built for real risks — not old myths.

Get Coverage That Actually Protects You

South Florida’s mix of storms, flooding, and heavy traffic requires more than generic advice. Chaisteli Insurance Group helps you see exactly what coverage you need — and what you don’t — so you avoid overpaying or leaving gaps.
Start today with a fast, personalized review through our quick auto quote tool and see real options in minutes.

Talk to a Local Advisor Before Your Next Policy Decision

Insurance myths disappear quickly when you have a real expert in your corner. Whether you’re updating coverage, replacing a car, or preparing for hurricane season, our advisors are here to guide you.
Connect with our team anytime for clear, local support.

Conclusion: The Truth Saves You Money (and Stress)

Auto insurance myths confuse drivers into overpaying, under-insuring, or facing massive surprises during claims. Understanding what actually affects your coverage — and what doesn’t — helps you protect your vehicle confidently. Chaisteli Insurance Group makes insurance simple, transparent, and tailored to Florida drivers. When you know the facts, you get better coverage for less.

FAQs

Does car color affect insurance rates?

No. Color is not a rating factor, according to the Insurance Information Institute. Insurers evaluate the vehicle itself, its safety features, risk profile, and your driving history — not paint color.

Is minimum coverage enough in Florida

Usually not. Florida DFS warns that minimums leave drivers exposed to vehicle damage, storm losses, and theft. Minimums only protect others — not your car.

Does getting multiple quotes hurt my credit?

No. Insurance quotes use soft inquiries, which do not impact credit scores. You can shop freely, and Chaisteli Insurance Group compares carriers for you.