- Learn the truth behind common car insurance myths about minimum coverage, theft, fault, maintenance and driving for rideshare or delivery apps.
- Understand when coverage may apply, when it may not and which optional coverages could help fill common gaps.
- Use a quick comparison table, practical tips and FAQs to answer common insurance questions in plain language.
5 Common Car Insurance Myths
Car insurance — nearly every state requires it, but it’s something you hope you never need. After you purchase your policy and pay your premium, you may not give your coverage another thought.
Key Takeaways
But not giving your insurance a second thought is risky. There are plenty of car insurance myths about what a policy actually covers. Not knowing the ins and outs of your policy could end up costing you when you need coverage most.
Quick takeaway: A standard auto policy may help with accidents, theft and certain types of vehicle damage, but it generally doesn’t cover everything. Maintenance, wear and tear, and some business-use situations are common gaps.
Be aware of these 5 common misconceptions about auto insurance:
| Myth | Reality |
|---|---|
| State minimum coverage is enough for everyone. | It may meet legal requirements, but it can still leave you underinsured and with costly out of pocket expenses. |
| All policies cover car theft. | Theft is usually covered only if you carry comprehensive coverage. |
| If the crash isn’t your fault, your insurance doesn’t matter. | Your own policy may still be important if the other driver has little or no coverage. |
| Insurance covers maintenance problems. | Normal wear, tear and mechanical issues are generally not covered. |
| Personal auto insurance covers rideshare and delivery driving. | Most standard policies exclude coverage for rideshare or business use unless you add the right endorsements. |
1. State-minimum coverage is really all I need
Typically, drivers are required to have policies that meet state-minimum liability coverage that pays for the other person's injuries and property damage if you cause an accident.
However, state-minimum coverage provides limited protection. If you’re in an accident that causes substantial damages or injuries, you may need higher coverage limits to help protect your assets.
Additionally, liability-only policies don’t provide coverage for damage to your own vehicle. Instead, you may need coverage that combines liability insurance with collision and comprehensive protection.
2. All car insurance policies cover car theft
It’s a terrible feeling: You walk out to where you parked your car overnight, only to find an empty parking space. To add insult to injury, if you don’t have the right car insurance, the theft may not be covered.
Some people think that because they have car insurance, they’re covered against events like theft or vandalism. But if you’re asking, “Does car insurance cover car theft?” the answer is usually that theft is covered only if you carry comprehensive car insurance, which helps with damages or losses caused by incidents beyond car collisions.
To learn more, see What Is Comprehensive Insurance?.
3. If the other driver is at fault, I don’t have to worry about my insurance
In an ideal world, if you’re rear-ended by another driver, that driver’s insurance company would reimburse you quickly and you’d be back on the road in no time. In reality, it can be more complicated.
Even if the other driver admits fault, they may have inadequate coverage or no insurance at all. As a result, adding uninsured and underinsured motorist protection to your policy can be a good idea; this form of coverage helps pay for your injuries or damages if the other driver’s coverage is insufficient.
If you live in a no-fault state, your own insurance typically covers your medical expenses and other related costs, up to a certain limit, regardless of who caused the accident.
And if you are in an accident that isn’t your fault, you should still report the accident to your insurer. They can help explain your options and how your coverages may apply.
4. Comprehensive insurance covers wear and tear
Comprehensive insurance can be reassuringly useful. If a tree falls onto your windshield, if a deer dashes out in front of your car or if your car window is smashed by thieves, comprehensive coverage may help reimburse you for repairs.
But does car insurance cover maintenance? The answer is usually no. Comprehensive insurance does not cover basic wear and tear. If your car starts leaking oil or the transmission starts making a grinding sound that wasn't caused by an accident, you’re generally responsible for the repairs.
Keeping up with car maintenance may help lower the likelihood of an accident, so follow your manufacturer’s guidelines for maintenance and service appointments.
5. Personal auto policies cover rideshare or delivery driving
If you’ve taken a side gig as a rideshare or delivery driver, it's important to review your insurance. Many people think they’re adequately covered between their personal auto insurance policy and the platform’s insurance. But that’s not always the case.
The rideshare or delivery platform’s coverage only comes into play in certain scenarios, such as when a customer or delivery is in your car. And your personal auto insurance policy may exclude incidents that occur while the car is being used for business purposes, so certain claims may not be covered. If you’re asking questions like, “Does car insurance cover rideshare?” or “Does car insurance cover delivery driver use?” the answer may depend on your policy and whether you’ve added the right endorsement.
The solution? You can contact your insurer and ask about adding a rideshare endorsement or “rider” to your policy. Adding rideshare coverage to your existing policy may provide additional protection.
Understanding your car insurance policy
Knowing how car insurance works and what your policy covers – and what it doesn’t – can save you stress and improve your peace of mind. Knowing what coverage you need and when it comes into play can help you choose the right protection for you and your family.
Want a broader look at your options? Explore Amica’s Car Insurance Policies and What Is Gap Insurance? if you’re financing or leasing a newer vehicle.
Get an auto insurance quote today
FAQs about car insurance
Usually, car theft is covered only if you carry comprehensive coverage. Collision or liability-only coverage generally won’t pay to replace your stolen vehicle.
No. Routine maintenance, wear and tear, and most mechanical breakdowns are generally not covered by car insurance.
You should still contact your insurer and, in some cases, you may need to file through your own policy first. This can be especially helpful if the other driver is uninsured, underinsured or doesn't believe they’re at fault.
Not always. Some personal auto policies exclude rideshare use unless you add specific coverage or an endorsement.
Not always. If you use your car for food or package delivery, your personal policy may not cover every claim unless you have the appropriate business-use or rideshare-related endorsement.
This story was created in partnership with Money.com
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