2022

The 5 Biggest Car Insurance Myths

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

The 5 Biggest Car Insurance Myths
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.

Myth #1
78%

of drivers falsely believe that comprehensive coverage will help cover the damage done to their vehicle in the event of a collision.

Myth #2

Bodily injury liability covers a policy holder’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.

52%

of drivers falsely believe that bodily injury liability covers their own medical expenses from an at-fault accident.

Myth #2
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.

Myth #3
36%

of drivers falsely believe that car color is factored into their insurance rate.

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 #1
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.

Myth #5

About

The 5 Biggest Car Insurance Myths: What Most Americans Get Wrong About Their Policies is an investigation into how well the average American driver understands their auto insurance policy. Insurify surveyed over 1,000 respondents about what they believe their car insurance actually covers and how they think it works.

Insurify’s research team set out to bust the five most common misconceptions about car insurance to educate drivers and help them make informed decisions on their policy options. This report includes statistics on how well Americans actually understand what their insurance covers, the real facts that all policyholders should know, and tips on how to compare car insurance to save money on their premiums.

Methodology

To compile The 5 Biggest Car Insurance Myths: What Most Americans Get Wrong About Their Policies, Insurify’s research team commissioned Pollfish to survey 1,068 U.S. drivers at the end of 2021. Drivers from all 50 states and all age demographics above the age of 18 are represented in the survey results. The sample base of respondents was proportioned to represent the overall population of adult vehicle owners who are the primary driver on their policy.

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.