Auto insurance is one of those things most people buy, file away, and don’t think about again—until they need it. But a lot of what folks believe about car insurance simply isn’t true. And when it comes time to file a claim, those myths can cost you real money.
At Safe Beacon Insurance, we hear these misconceptions every day from drivers across Round Rock, Pflugerville, Georgetown, and Hutto. So today, we’re setting the record straight on the most common auto insurance myths—and what you really need to know.
Myth #1: Red Cars Cost More to Insure
The Truth: Your car’s color has absolutely no effect on your insurance rate.
What does matter is your car’s:
- Make, model, and year
- Body style
- Engine size
- Safety ratings
- Theft rate
Insurance companies don’t even ask for the color when quoting coverage. So go ahead and drive that cherry-red Mustang—it won’t change your premium.
Myth #2: “Full Coverage” Means Everything is Covered
The Truth: “Full coverage” is a vague term and doesn’t actually exist in policy language.
What people usually mean is:
- Liability coverage (covers damage/injury you cause to others)
- Collision coverage (pays for damage to your car from an accident)
- Comprehensive coverage (covers theft, fire, hail, animal collisions, etc.)
But even those three together don’t cover:
- Rental car reimbursement
- Roadside assistance
- Custom equipment
- Gap coverage (if you owe more than the car is worth)
You have to add those coverages if you want them included.
Myth #3: My Friend Can Borrow My Car and Be Covered on Their Insurance
The Truth: Insurance usually follows the car, not the driver.
If someone borrows your car and gets in an accident:
- Your insurance is typically primary
- The borrower’s insurance (if any) may kick in as secondary
So yes, you could be stuck with the claim and any premium increases that come with it.
Myth #4: Older Drivers Always Pay More
The Truth: Age matters—but so does driving history, vehicle type, and even where you live.
In fact, drivers in their 50s and 60s often get the best rates—especially if they have clean records and low annual mileage.
At Safe Beacon, we help older Round Rock drivers maximize discounts like:
- Defensive driving course credits
- Multi-policy bundles
- Low mileage usage plans
Myth #5: Minimum Coverage is Enough
The Truth: Texas has legal minimums, but they’re often not enough to fully protect you.
The Texas minimum auto liability limits are:
- $30,000 for injury per person
- $60,000 for injury per accident
- $25,000 for property damage
But if you total someone’s $50,000 truck or cause a multi-car pileup, those limits won’t go far—and you could be sued personally.
We always recommend higher limits, especially in growing areas like Round Rock where traffic and vehicle values are on the rise.
Myth #6: My Insurance Will Cover My Personal Items in the Car
The Truth: Auto insurance does not cover your personal belongings in the vehicle.
If your laptop or purse is stolen from your car, that would be covered under your homeowners or renters insurance, not your auto policy.
Make sure you have both policies in place—and check for off-premises personal property coverage.
Myth #7: If My Car is Totaled, I’ll Get Back What I Paid for It
The Truth: Insurance pays actual cash value (ACV)—not what you paid, and not what you owe.
ACV is the current market value of your car, taking depreciation into account.
Example:
- You paid $28,000 for your SUV three years ago
- It’s now worth $19,000
- That’s what your payout will be if it’s totaled
If you still owe $23,000 on your auto loan, you’d be out $4,000—unless you have gap insurance.
Myth #8: My Credit Score Doesn’t Affect My Rate
The Truth: In Texas, credit history does play a role in determining your auto insurance premium.
Insurers use a credit-based insurance score to help predict risk. Better credit often means lower premiums.
We always review multiple carriers to find the best match—some are more credit-sensitive than others.
Myth #9: I Don’t Need Uninsured Motorist Coverage if I Have Health Insurance
The Truth: Uninsured/underinsured motorist (UM/UIM) coverage does more than cover medical bills.
It can also pay for:
- Lost wages
- Pain and suffering
- Property damage
- Hit-and-run accidents
Texas has a high rate of uninsured drivers. UM/UIM coverage is one of the most affordable and valuable protectionsyou can add.
Myth #10: New Cars Are Always More Expensive to Insure
The Truth: Not necessarily—it depends on the car.
Some new vehicles are:
- Built with better safety tech (lowering your risk)
- Less likely to be stolen
- Cheaper to repair due to mass production
Sometimes, an older luxury car can cost more to insure than a brand-new compact SUV.
Let us quote both options before you buy—we’ll give you the real numbers.
Why These Myths Matter in Central Texas
Driving in and around Round Rock means sharing roads with:
- Busy I-35 traffic
- Construction zones
- High-speed toll roads
- Frequent storms (hello hail damage!)
You need a policy that’s based on reality—not rumor. That’s where Safe Beacon Insurance comes in.
We help Texas drivers:
- Understand what they’re buying
- Avoid underinsured surprises
- Find discounts that make sense
- Stay protected as life and traffic change
Real Stories from Round Rock Clients
Myth Busted: Red Truck Blues
One client came in worried his red pickup would jack up his rates. We showed him side-by-side quotes with the same model in different colors—no price difference. He left relieved, and a little amused.
Claim Surprise: Theft Coverage Gap
Another client had a gym bag with expensive headphones and a tablet stolen from their backseat. Their car policy didn’t cover it—but their renters policy did. One quick call saved the day.
Final Thoughts: Don’t Let Myths Cost You
At Safe Beacon Insurance, we believe clear beats clever—especially when it comes to coverage.
Don’t fall for the myths. Let us:
- Review your current policy
- Explain what’s really covered
- Shop around for better options
We serve drivers across Round Rock, Pflugerville, Hutto, Georgetown, and beyond. Whether you’re commuting daily or just weekend cruising, we’ll make sure your auto insurance is built on facts—not fiction.
Want a Free Auto Insurance Review?
Let’s debunk the confusion together.
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Tags: Auto Insurance Myths Texas, Safe Beacon Insurance Round Rock, Truth About Car Insurance, Texas Car Insurance Tips, Auto Coverage Explained, Central Texas Insurance Help