Car Insurance Myths Debunked by a State Farm Agent

Posted on 2026-03-16 22:39:26

The phone rings, and I can often guess the first question before I pick up. Someone saw a neighbor’s premium on social media, or a cousin sworn to be an expert insisted that red cars cost more to insure. After more than a decade at a State Farm insurance desk, I’ve learned that car insurance looks simple on the surface but gets tangled by half-true rules of thumb. Those tangled threads can cost people money, or worse, leave them exposed financially when they need coverage most.

I work with families, new drivers, and small businesses every day. I have watched a careful choice save a client thousands after a crash, and I have helped untangle a policy that someone bought in a rush and didn’t really understand. Here are the myths I hear most often, and what a State Farm agent will actually look at when helping you build a policy that fits.

Why myths stick around

Insurance isn’t a single product. It is a legal agreement, a financial product, and a practical tool you use on a bad day. That mix invites short cuts in conversation. People try to translate contract language into easy sayings. Add in the fact that rules vary by state, vehicles change, and your personal situation shifts over time, and it is easy for a useful tip in 2017 to become an expensive myth in 2026. Search engines do not always help. The top result for insurance agency near me might be a call center three states away, not a local insurance agency that knows your roads and repair shops.

If you prefer to sit down face to face, a local office helps. In my area, when someone walks into an insurance agency Cedar Lake residents know, the conversation changes. We can pull up real repair costs from shops up the road, look at where you park at night, and talk about what happens on Route 41 when winter hits. Geography and daily habits matter, and they usually do not fit into a viral post.

Myth 1: Red cars cost more to insure

I wish I had a dollar for every time I heard this. Color does not appear in rating formulas. The VIN tells us the year, make, model, body style, engine size, and safety features. That combination, not the paint code, affects the premium. Clients with identical models in red and silver can have the same price, all else equal. What sometimes confuses people is that sporty trims frequently come in brighter colors, and those trims can be more expensive to insure because of performance specs and repair costs, not because the paint is red.

Myth 2: Minimum state limits are enough if you drive carefully

State minimum liability limits exist to get people legally on the road, not to protect your assets. I have seen a single at-fault crash with two injured occupants blow past minimum limits within a week, mostly due to medical bills and lost wages. An ambulance ride, ER visit, imaging, and follow-ups can run into five figures quickly. If your liability limit runs out, the injured party can pursue you personally. If you have a home, savings, or future wages, those are all in the conversation.

A useful benchmark I share often: choose liability limits high enough that if your policy has to write a check, they are writing it, not you. Many families opt for 250/500/100 or a combined single limit in that range. If you own a home or have meaningful savings, an umbrella policy on top of your auto policy can add another million or more of protection for a surprisingly modest premium.

Myth 3: “Full coverage” means everything is covered

Full coverage is not a legal term. It usually refers to a policy with liability, comprehensive, and collision. That does not mean you have rental car coverage, roadside assistance, new car replacement, custom equipment coverage, or OEM parts allowances. If you finance or lease a vehicle, you might need gap coverage or a loan/lease payoff option, and that is not automatically included either.

When a client says they want full coverage, I ask what they want to happen on specific bad days. If a deer jumps out, do you want a rental while the shop repairs your SUV? If a hailstorm pummels the hood, do you want to pay for a larger deductible or accept a slightly higher premium for a smaller one? If your teen loses a key fob, are you comfortable paying out of pocket? The answers guide the add-ons beyond the big three coverages.

Myth 4: If your car is old, drop collision and comprehensive

Sometimes that is the right call, sometimes it is not. Here is the math I walk through. If your 12-year-old sedan is worth 5,000 dollars and your collision deductible is 1,000, the maximum payout for a collision claim is 4,000. If collision costs you 280 dollars per year and you rarely drive, you might accept the risk. But if you commute 60 miles a day through deer country and comprehensive is only 130 dollars per year with the same deductible, keeping comprehensive can pay for itself the first time a branch cracks your windshield in a storm. There is no rule that both must go at once. You can drop collision and keep comprehensive on an older car.

Myth 5: One claim will double your rates for years

Insurers look at frequency and severity. A cracked windshield with no fault and a small payout does not affect your rate like an at-fault crash with injuries. In many states, not-at-fault claims do not trigger surcharges at all. At-fault crashes typically bring a surcharge that can last three years, sometimes five, and the percentage depends on the company and state filing. Two small at-fault fender benders in a year can be worse than a single big one from a rating standpoint because they signal a pattern. I have worked with clients to decide when it makes sense to pay for a minor repair out of pocket to avoid a surcharge, and when it is smarter to use the policy you bought. That decision is situational. Call before you file if you are unsure. A conversation does not automatically create a claim.

Myth 6: Credit does not affect car insurance

In many states, an insurance score based partly on credit information is a legal rating factor. In a few states, credit-based insurance scores are restricted or not used. I never see a client’s credit report, and insurers do not get account-level details. Instead, a scoring model looks at patterns, such as the length of credit history and on-time payments. The reason is statistical, not moral. People who manage credit predictably tend to file fewer or less severe claims over time. If your state allows it and your credit has improved, ask your State Farm agent to see whether a rerate helps. If your state restricts credit use, the agent will tell you plainly.

Myth 7: Insurance follows the driver, not the car

For standard personal auto policies, coverage generally follows the car first. If you let a friend borrow your vehicle and they cause a crash, your policy is on the hook before theirs, assuming you gave permission. If your friend carries no insurance or very low limits, you could be left dealing with a surcharge and a claim under your policy. If you often share vehicles with roommates or extended family, list frequent drivers. If you run errands for pay, read the section below on rideshare and delivery.

Myth 8: Getting married or moving always lowers your premium

Life changes cut both ways. Marriage can change your rating tier and driving patterns, and bundling with a partner can open discounts. But moving from a quiet suburb to a dense urban ZIP with higher claim frequency can raise your premium even if your driving record is spotless. Where the vehicle sleeps at night, how far you commute, and local repair and medical costs matter. I see people relocate for work, keep the same car, and see a 15 percent swing simply based on garaging and miles.

Myth 9: If I was not ticketed, it won’t affect my insurance

Tickets and chargeable accidents are separate. You can be at fault in a crash without receiving a moving violation, and that crash can still impact your premium. Conversely, a zero-fault accident reported by the other driver can show up on your record even if you never filed a claim. If a parking lot tap happens and you exchange information, call your agent and document details. Objective facts help correct errors before renewal.

Myth 10: New cars always cost more to insure

Not always. A new vehicle with advanced driver assistance systems, strong crash ratings, and theft deterrents can price competitively against an older model lacking those features. On the other hand, sensor-packed bumpers and cameras raise repair bills when a minor scrape occurs. I have quoted clients where a new midsize hybrid cost within 5 percent of their older V6 sedan because the hybrid had better safety equipment and lower theft rates, even though its sticker price was higher. It depends on the specific model’s repair costs and loss history.

Myth 11: A glass claim is no big deal

Glass claims are common and are often not chargeable, but there are trade-offs. Some comprehensive deductibles are separate for glass, others are not. In many states, you can opt for full glass coverage with no deductible for a modest premium. If you have a vehicle with ADAS that requires camera recalibration after a windshield replacement, a simple crack can turn into a 900 to 1,500 dollar job. If you have a 500 dollar deductible and decline full glass, you might pay the whole bill. If you drive highways peppered with gravel trucks, full glass can be a smart add.

Myth 12: Personal policies cover rideshare and delivery

A standard personal auto policy excludes coverage while you are logged into a rideshare app and waiting for a fare, or actively transporting a passenger or delivering goods for a fee. Rideshare companies typically provide some coverage once you accept a ride, but there are gaps. A rideshare endorsement can fill the time between logging in and accepting a trip, and can align deductibles so you are not stuck with a high corporate deductible if a crash happens. If you use your car for delivery evenings or weekends, say so when you seek a State Farm quote. Your agent will match the coverage to the use. Silence is not your friend here.

Myth 13: Telematics will only raise my rate, and it invades my privacy

Usage-based programs, like State Farm’s Drive Safe & Save, offer discounts tied to driving habits such as smooth braking and lower annual mileage. In practice, I see a range of outcomes. A cautious commuter who drives off-peak might see double-digit savings. A contractor who brakes hard in Chicago traffic may not love the feedback, and the discount could be modest. Most programs do not surcharge you for poor scores, they just limit the discount. If you are uneasy about data sharing, ask exactly what is collected, how it is used, and whether you can test it in one vehicle before adding the rest of the household.

Myth 14: Paying monthly costs the same as paying in full

Installment plans are helpful, but they often include small per-payment fees. Over a year, those can add up to the cost of an endorsement you actually need, like rental reimbursement. If cash flow allows, quarterly or pay-in-full options can shave meaningful dollars. If cash flow does not allow it, set payments on autopay to avoid late fees and keep discounts tied to continuous coverage.

Myth 15: You can buy a policy after a crash and it will cover the loss

Insurance is not retroactive. I have taken too many calls where someone planned to State farm quote buy a policy after a quick errand, then got clipped at an intersection. If you are shopping rates, do not cancel existing coverage until the new policy is issued and active. A one-day lapse can hurt more than you think. In some states, an SR-22 filing is required after certain violations, and a lapse complicates that process further.

Myth 16: Rental and roadside are automatically included

They are not. Rental reimbursement covers a temporary car while yours is repaired after a covered loss. It does not apply if your engine fails or your transmission dies. Roadside assistance is an optional service that handles tows, jump starts, and lockouts. Both are typically inexpensive and worth it for most families, but you have to add them. Check the per-day rental limit. In places where repair queues run long, a 30 dollar per day limit barely covers a compact, and you could be in a rental for weeks after a hail event that floods the body shops.

Myth 17: The bank’s requirement equals the right coverage

Lenders require comprehensive and collision with a deductible below a certain threshold. That protects their interest in the vehicle’s value. It does not protect your liability exposure or cover the difference between what you owe and what the car is worth if it is totaled. If you put little down or you drive high annual miles, consider gap coverage or a loan/lease payoff option. I have watched a driver owe 3,800 dollars to a lender after a total loss because the market value dipped and there was no gap. A modest premium would have erased that balance.

What really affects price, and what you can control

Insurers file rating plans with regulators that weigh many factors. Some are beyond your control, like local medical inflation or a hailstorm year. Others sit squarely in your lane. When clients ask how to keep a State Farm insurance premium stable, I focus on levers with the best return.

Choose higher deductibles only where you can afford the risk, and keep an emergency fund to match. Maintain continuous coverage without gaps, even between vehicles. Bundle home or renters with your auto to unlock multi-line discounts. Enroll qualified drivers in defensive driving or teen driver programs where available. Keep vehicles garaged when possible, and use anti-theft features.

The claim nobody plans for: borrowed cars and permissive use

One Saturday, a dad in our community let his college-age son borrow the family SUV to help a friend move. A long day turned into a short distraction, and the SUV nudged the back of a newer crossover at a stoplight. No one was hurt, but there was visible damage. The friend’s parents believed their own State Farm insurance policy would sort it out because their child was behind the wheel of the struck car. In reality, the dad’s policy on the SUV stepped in first for property damage liability, because the coverage followed the SUV. The dad carried solid limits, so the claim closed smoothly. If his limits had been low, that ordinary Saturday could have turned into a wage-garnishment problem. It is mundane stories like this, not viral pileups, that make me lean on adequate liability limits in daily conversations.

Repairs, parts, and the OEM question

After a collision, most modern vehicles need sensors calibrated and modules reprogrammed. Whether your policy mandates original equipment manufacturer parts or allows equivalent aftermarket parts depends on the policy language and state rules. OEM parts on a five-year-old car can be costly, and not every situation justifies them. If you own a newer vehicle with advanced safety equipment or you lease a car with return conditions, talk to your agent about endorsements that prioritize OEM parts where allowed. Also, decide on a preferred body shop before a loss. Your agent often knows reputable local shops and what they are certified to handle. In my town, I have two shops I recommend for aluminum body work because they own the right rivet tools and calibration equipment. That matters more than most people realize.

Teens, training, and the first accident

Teen drivers push premiums up for a simple reason: claim frequency is higher. There are ways to blunt the spike. Good student discounts are real. Certain driver education programs can trim rates. If your teen will be away at college without a car, note that as well. The first fender bender is still possible. When it happens, call me. Do not guess whether to file. We will weigh repair cost, fault, potential surcharges, and the long game. I would rather spend ten minutes on the phone than watch a hasty decision echo through your premiums for three years.

Regional realities and why local advice beats one-size-fits-all

Different regions bring different loss patterns. Along the south end of Lake Michigan, sudden lake-effect snow makes low-speed collisions with mailboxes common every winter, and deer strikes spike in late fall. In that environment, comprehensive with a sensible deductible is a quiet workhorse. In dense urban areas, theft and catalytic converter claims dominate for certain models, and adding an anti-theft device discount or parking in a monitored garage can make a bigger dent. A local insurance agency lives in that data, and a State Farm agent with a few hundred households on the books recognizes which risks are flaring up this season. That perspective turns a generic State Farm quote into something tailored.

The quiet cost of installment gaps and address drift

Two unglamorous mistakes drive avoidable increases: a lapse in coverage and a mismatch between where a vehicle is garaged and where the bill is mailed. If you move and forget to update your address, the policy can rate you in the wrong ZIP, which can mean the wrong premium, and it can also send notices to a mailbox you rarely check. I had a client lose a multi-car discount because a second vehicle was titled to a parent across town and garaged there part-time, but the policy still listed the old address. A few minutes of cleanup saved them a couple hundred dollars per year.

Shopping smart without losing context

Rate shopping helps, but do it with a full view. A lower premium is hollow if it hides lower limits or excludes a driver you thought was covered. Ask for side-by-side comparatives that show liability limits, deductibles, rental limits, rideshare endorsements if you need them, medical payments or personal injury protection as required by your state, and uninsured motorist limits that match your liability. The last one matters. If someone with minimal coverage hits you, uninsured and underinsured motorist coverage can be the difference between fixed medical bills and a long fight.

A quick coverage checkup that pays off

Use this five-point pass once a year, especially at renewal or after a life event.

Confirm liability and uninsured motorist limits match your current net worth risk. Audit deductibles against your emergency fund, not your optimism. Verify all household drivers and vehicles are correctly listed and garaged. Add or adjust rental, roadside, and glass based on your repair market delays. Note any new uses such as rideshare, delivery, or business use and endorse accordingly.

How to get a strong State Farm quote that fits, not just a low price

You can start online, by phone, or by stopping into a local office. If you search insurance agency near me, consider whether a local office like an insurance agency Cedar Lake residents use regularly will serve you better than a call center. The right details upfront save back-and-forth and prevent surprises.

Bring VINs, driver’s license numbers, current odometer readings, and annual mileage estimates. List recent claims and tickets with approximate dates, even if small. Share how you use each car, including commuting, rideshare, delivery, or business tasks. Decide on target deductibles you can truly afford and which add-ons matter to you. Ask your State Farm agent for discounts you might qualify for, such as multiple vehicles, multi-line with home or renters, good student, defensive driving, or telematics.

A good agent will not rush you. The best conversations feel less like a sale and more like a fitting. If we discover your second car only leaves the garage on weekends, that might open a different rating category. If your teen’s grades improved, that might unlock a better student discount immediately.

The role of your agent when the day goes sideways

On the day you need the policy, speed and clarity matter. An established State Farm agent knows which tow yards to avoid, which body shops have loaners, and how to structure a claim so that documentation is complete the first time. I had a client side-swiped on a Friday evening. We pushed photos, the police report number, and the other driver’s information into the claim portal before midnight. An adjuster contacted her Saturday morning, the rental was set by Monday, and the shop had parts ordered by Tuesday. None of that changes the fact that her bumper and quarter panel needed work, but it kept the disruption to a single workweek instead of a month.

When to change your coverage, and when to wait

Clients often ask if they should change coverage after a neighbor’s story. My advice: change coverage when your life changes. New driver in the household, new commute, new address, new car loan, a paid-off vehicle, a side gig, or a major purchase that increases your assets. Those are signals. Rates drift with market forces, but coverage should follow your facts. If rates bump up at renewal, ask what drove it. Sometimes it is a statewide change to medical costs or parts inflation across a make and model. We can often find modest adjustments that keep your protection intact while easing the premium shock, like nudging a deductible on an older vehicle or trimming an endorsement that no longer fits.

Final thought from the desk of a local agent

The best car insurance feels boring most of the time, then exceptional for a week, then boring again. The boring stretches mean your life is moving without drama. The exceptional week is when the promise you bought becomes real. You do not need insider tricks. You need straight answers, coverage matched to your risk, and a responsive human when a truck kicks up a rock or a driver misses a stop sign. Whether you click for a State Farm quote after dinner or drop by a State Farm agent’s office on your lunch break, aim for clarity over buzzwords. If you are nearby, walk into an insurance agency you can see from your own street. If you are farther afield, find an insurance agency that knows your roads as well as you do. Either way, leave the myths at the door, and pick up a policy that fits the way you actually live and drive.

Name: Aron Schuhrke - State Farm Insurance Agent
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Website: Aron Schuhrke - State Farm Insurance Agent in Cedar Lake, IN
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Aron Schuhrke – State Farm Insurance Agent provides reliable insurance services in Cedar Lake, Indiana offering renters insurance with a highly rated approach.

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Landmarks in Cedar Lake, Indiana

Cedar Lake – Large natural lake popular for boating, fishing, and waterfront recreation.
Lemon Lake County Park – Expansive park with hiking trails, disc golf courses, and nature areas.
Cedar Lake Town Complex – Central municipal area hosting community events and town services.
Lake County Fairgrounds – Venue for the annual county fair, exhibitions, and local festivals.
Monastery Woods – Scenic nature preserve offering walking trails and peaceful wooded landscapes.
Cedar Lake Historical Association Museum – Local museum highlighting the town’s history and development.
Potawatomi Park – Family-friendly park with playgrounds, picnic areas, and sports fields.