Insurance Myths, Busted

When it comes to insurance coverage, don’t believe everything you hear. Knowing the truth about insurance myths will help you choose the coverage that’s right for you.

  • My auto insurance policy includes coverage for both personal and business use.
    FALSE. If you are self-employed or use your car for business travel – like operating a delivery service or providing transportation through a ride-sharing service – your personal auto insurance policy may not cover you. A commercial auto insurance policy provides coverage for business purposes; however, some insurance companies now have ride-sharing endorsements to add to your personal policy. Your agent can inform you if your current personal auto policy is eligible for such endorsements.
  • The color of my car affects my auto insurance rate: FALSE
    Car color does not affect your insurance premium. However, other factors, like a vehicle’s model, make, year, and the driver’s experience and driving record – may impact auto insurance rates.
  • Loaning my car to someone also means loaning my car insurance: TRUE
    In most states, car insurance follows the vehicle. This means your insurance company might pay for damages caused by someone else if they’re driving your car. Policies and laws differ by state, so make sure you understand the rules before letting a friend drive your car.

Get the facts about common insurance questions. For more information about auto, home and other personal lines of insurance, call a AAA insurance agent at (888) 222-6446, or visit