Auto Insurance Myths Debunked

January 22, 2025

Don't Be Fooled: Debunking Common Myths About Car Insurance

Car insurance can be confusing, and there are many misconceptions floating around that can lead to poor decisions and inadequate coverage. Let's debunk some of the most common myths to help you make informed choices about your auto insurance.

Myth 1: Red Cars Cost More to Insure

Reality: The color of your car has no impact on your insurance premiums. Insurance companies are interested in factors like your car's make, model, year, safety features, and the likelihood of it being stolen, not its color.

Myth 2: My Credit Score Doesn't Affect My Insurance Rates

Reality: In many states, insurance companies use credit-based insurance scores as a factor in determining your premiums. Studies have shown a correlation between credit history and the likelihood of filing a claim. Maintaining a good credit score can potentially help you secure lower insurance rates.

Myth 3: If Someone Borrows My Car and Gets into an Accident, Their Insurance Will Cover It

Reality: In most cases, your auto insurance policy is primary, meaning it covers your vehicle regardless of who is driving it (with your permission). If the damages exceed your policy limits, the driver's insurance may act as secondary coverage. It is important to be careful who you allow to drive your vehicle.

Myth 4: Minimum Liability Coverage Is Sufficient

Reality: While minimum liability coverage meets the legal requirements in your state, it may not be enough to fully protect you financially in a serious accident. If you're at fault, you could be held responsible for damages that exceed your policy limits, putting your personal assets at risk. Consider higher liability limits for better protection.

Myth 5: Personal Auto Insurance Covers Business Use of My Vehicle

Reality: If you use your vehicle for business purposes, such as making deliveries or transporting clients, your personal auto policy may not provide coverage in an accident. You'll likely need a commercial auto insurance policy to be adequately protected.

Myth 6: Comprehensive Coverage Means I'm Fully Covered

Reality: Comprehensive coverage protects your vehicle from non-collision events like theft, vandalism, fire, or natural disasters. It does not cover damages from an accident with another vehicle or object, that would fall under collision coverage. "Full coverage" is not a standard policy type, but rather refers to having both comprehensive and collision coverage along with liability.

Myth 7: My Insurance Rates Will Automatically Go Down as My Car Gets Older

Reality: While the value of your car depreciates over time, other factors can influence your insurance rates. These factors include your driving record, claims history, location, and even general trends in insurance costs.

Myth 8: I Don't Need Uninsured/Underinsured Motorist Coverage if I Have Health Insurance

Reality: Uninsured/underinsured motorist coverage protects you if you're in an accident with a driver who has no insurance or insufficient insurance to cover your medical expenses and other damages. Even if you have health insurance, it may not cover all accident-related costs, such as lost wages.

Get the Facts from the Experts

Navigating the world of auto insurance can be challenging. Don't rely on myths and hearsay. Talk to a knowledgeable insurance agent who can explain your coverage options, answer your questions, and help you find the best policy for your needs and budget.

Contact San Marcos Insurance Agency today for a free auto insurance quote and let us help you separate fact from fiction.

< Older Post

Newer Post >

White house with red trim, small porch, picket fence, fall leaves.

Empty Nesters in Hays County? How to Right-Size Your Insurance When You Downsize Your Home

December 10, 2025

How to Right-Size Your Insurance When You Downsize Your Home

Boat dashboard with wooden steering wheel, seat, and water in background.

Beyond the Commute: Insuring Your Boat, RV, and Motorcycle in Central Texas

December 3, 2025

Living in Central Texas isn't just about the great communities and proximity to Austin and San Antonio. For many of us, it's about the weekends. It’s about getting out and enjoying the incredible landscape that surrounds us. It's about launching the boat at Canyon Lake, taking a scenic motorcycle ride through the twists and turns of the Hill Country, or parking the RV for a long weekend getaway. Your "toys" are your ticket to freedom, but they also represent a significant investment and a major liability. A common and costly mistake is assuming your auto or home insurance policy automatically covers them. It doesn't. At San Marcos Insurance Agency, we help our clients protect their fun. Here’s what you need to know about insuring your recreational vehicles. 1. Boats on Canyon Lake & The Guadalupe Here’s the hard truth: Your homeowners insurance provides little to no meaningful coverage for your boat. It might cover a small canoe or kayak for liability on your property, but the moment you put a motor on it or take it to a lake, you're exposed. A dedicated boat policy is essential and covers: • Physical Damage: Protects the boat, motor, and trailer from theft, fire, or damage, whether it's on the water or in your driveway. • Liability: This is critical. It covers you if you cause an accident that injures another boater or damages their property (docks, other boats). • On-Water Towing: If you're stranded in the middle of Canyon Lake with a dead engine, this coverage is a lifesaver, paying for the tow back to the marina. • Wreckage Removal: If your boat sinks, you are legally responsible for the cost of removing it. This coverage handles that expense. 2. Motorcycle Rides in the Hill Country A motorcycle isn't just a smaller car; it carries entirely different risks. The winding roads around Wimberley and Dripping Springs are beautiful but demand respect. Standard auto insurance isn't enough. A motorcycle policy needs to include: • Guest Passenger Liability: Does your policy cover a passenger riding with you? Many don't unless you specifically add it. • Custom Parts & Equipment (CPE): You've spent money on custom pipes, a new seat, and chrome. Your basic policy won't cover those upgrades unless you add CPE coverage. • Higher Medical Payments: With a higher risk of injury, increasing your own medical payments coverage is a smart move. 3. RVs & Travel Trailers: A Vehicle or a Home? The answer is: it's both. And it needs to be insured that way. Your auto policy only provides basic liability when the trailer is hitched to your truck, and your home policy doesn't cover it at all. You need a dedicated RV or travel trailer policy, which combines the best of auto and home insurance: • Total Loss Replacement: If your new RV is totaled, this can help you get a brand new, comparable model, not just the depreciated cash value. • Vacation Liability: Covers you for injuries or property damage that happen at your campsite—for instance, if a guest trips over your awning. • Personal Effects: Covers all the stuff you keep inside your camper (grills, TVs, clothes, camping gear) that aren't part of the vehicle itself. • Full-Timer's Liability: If you live in your RV for months at a time, this provides broader liability protection that acts more like a homeowners policy. 4. The Bundle is Your Best Friend Here's the good news. Insuring your "toys" doesn't have to be complicated or expensive. Most carriers we work with offer significant discounts for "bundling." When you insure your boat, motorcycle, or RV with the same company that writes your home and auto policies, you not only simplify your life with one agent and one bill, but you can also unlock multi-policy discounts that save you serious money. Get Your Fun Covered Before you hook up the trailer or roll out the bike for your next adventure, let's talk. A quick 15-minute call with us can ensure your weekend fun is properly protected. Contact San Marcos Insurance Agency today for a free, no-obligation quote on your recreational vehicles.