The 5 Biggest Car Insurance Myths in 2022

Insurify tested over 1,000 American drivers on their car insurance knowledge. Here are the results.

Tanveen Vohra
Written by
Tanveen Vohra
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Written by
Tanveen Vohra
Editorial Manager
Tanveen Vohra is an editorial manager at Insurify specializing in writing about property and casualty insurance. Through her work, Tanveen helps consumers better understand the components of their insurance policies so they can make smarter purchase decisions.Tanveen's work has been cited by CNBC , Fox Business, Business Insider, Fortune, and Market Watch, among others.
Chase Gardner
Edited by
Chase Gardner
Headshot of Chase Gardner
Edited by
Chase Gardner
Data Journalist
Chase Gardner is a data journalist at Insurify. He informs readers on major developments in the auto and home industries through research into driver behavior, homeownership tendencies, cost of living trends, and more. He received a bachelor’s degree with concentrations in Environmental & Urban Studies and Statistics from the University of Chicago. Chase’s work has been cited in MSN, Yahoo News, The Street, and dozens of local news outlets across the country.
Andrew Huang
Reviewed by
Andrew Huang
Headshot of Andrew Huang, Directory of Analytics at Insurify
Reviewed by
Andrew Huang
Director of Analytics
Andrew leads data analysis at insurify.com, and he has formerly led data analysis projects at kayak.com and realtor.com. Andrew strives to help people save money on their insurance, and in his free time he loves finding great deals on travel flights. Insurify's network bidding algorithms and Kayak's flight trends are personal favorite projects.

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Myth #1

Everything is covered by comprehensive coverage

Despite its name, comprehensive coverage does not cover all vehicle damage. Yet nearly 8 out of 10 drivers incorrectly answered that comprehensive coverage would cover them in the event of an accident. In reality, comprehensive coverage specifically covers damage unrelated to a car accident like theft, vandalism, or natural disasters.

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Myth #2

Bodily injury liability covers a policyholder’s own medical bills

If a driver finds themself at fault for a collision that injures another driver, bodily injury liability coverage will cover the injured party’s related expenses. Bodily injury liability, however, will not cover the at-fault driver’s medical expenses should they also get injured. Though bodily injury liability coverage is required in most states as a part of any auto insurance policy, over half of the drivers surveyed misunderstood what it covers.

Myth #3

Colorful cars are more expensive to insure

Insurers consider a driver’s record, location, and personal profile, as well as their vehicle’s age, make, and model when determining insurance rates. Car color, however, is not a factor used to set rates, despite what over one-third of drivers incorrectly assumed.

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Myth #4

There’s no way to pay less for insurance

Insurance discounts are a great way for many drivers to save money on their policy. Drivers who take advantage of discounts, such as having low mileage or bundling home and auto insurance, can spend much less than the average cost of car insurance on coverage.

But discounts can only help drivers save when they’re actually used, which one-third of American drivers reported that they’re not. In fact, women are significantly less likely to take advantage of insurance discounts than men, and more women reported that they were unaware of any discounts they qualified for.

Myth #5

Shopping for insurance is slow, confusing, and stressful

The average American driver gets a lot wrong about insurance. But when it comes to shopping around, most drivers know that comparing quotes is the fastest and easiest way to find cheap car insurance rates. Shoppers who use insurance comparison sites like Insurify before buying a policy can save up to $996 annually.

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About

Insurify is America’s top-rated destination for the largest selection of accurate insurance quotes and expert advice, and it operates as a licensed insurance agent appointed in all 50 states. Featuring direct integrations with all top insurance companies, Insurify offers a personalized, real-time comparison and buying experience for auto, home, and life insurance policies.

More than 11 million policyholders have used Insurify since 2017. Insurify’s insurance experts and data scientists are also valued source of consumer education, delivering data-driven insights and fresh perspectives on statistics and general trends throughout the insurance industry.

Methodology

To create Insurify’s 2022 Auto Insurance Trends Report, the research team at Insurify examined more than 40 million rates from car insurance applications in its proprietary database over the past year.

Insurify driver applications originate from all 50 states and Washington, D.C., and include information on the car owner’s vehicle, their driving history dating back seven years, and their demographic information.

The premiums recorded on Insurify’s comparison platform are quoted via integrations with insurance companies. Average premium costs by location, driving history, or demographic subset reflect all premiums that insurance companies quoted to drivers within that subset.

The data on drivers’ experiences and consumer behavior comes from an Insurify survey of 1,200 participants in July 2022.

All statistics and percentages in this report are based on Insurify customer data and surveys unless otherwise stated.

Data attribution

The insights, statistics, data visualizations, and more from this report are free to use; we simply ask that you attribute any full or partial use to Insurify with a link to this page.

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