5 Car Insurance Myths You Should Stop Believing


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There are so many car insurance myths floating around that we know it can be difficult to get your head around what’s real and what’s not. There’s so much info out there that, unsurprisingly, sometimes we’re tempted to simply go with the brand we’re most familiar with. Or the one our friend has their car with.

Or, maybe just the cheapest comprehensive car insurance quote without really knowing what you’re getting for your money.

Sound familiar?

Why you should know about car insurance myths

It’s worth taking the time to understand what factors influence your insurance premium. Plus, you want to know the ins and outs of your car insurance policy so you’re not caught by surprise if you need to claim.

So if you’re not sure what car insurance myths should be believed and which are simply urban legend, read on…

“The colour of my car changes my insurance premium”

The car colour insurance myth is one of the oldest around. It says that cars with ‘loud’ colours (like red) are more likely to get stolen than cars with discreet colours, such as grey or white. Others say some car colours are more noticeable on the road so less likely to be involved in a crash. Is it true? Well, actually – yes, to some degree. The safest car colours tend to be white and light.

But does it actually change your car insurance premium, or is that a total myth? All insurers will increase your premium if you have a custom paint job, because they’ll be liable for replacing the whole car. But when it comes to a standard, showroom floor colour then some of the best insurance providers – like PD Insurance – are colour blind. Across the industry in general, other factors are more important than car colour.

At PD, your premium is calculated on factors such as driving record, car make, mileage, and safety features. We also look at how much it will cost to repair or replace the car in the event of an accident.

“My car insurance covers mechanical repairs”

Another common car insurance myth is that it covers you for absolutely evvvverything. Many new drivers are under the impression their comprehensive car insurance will cover ongoing mechanical repairs. The truth is, your insurance will most likely not cover mechanical failures.

Make it a point to find a mechanic you can trust and be sure to take your car in for regular services and stick to a proper car servicing checklist. Ongoing care and maintenance is important to avoid costly repairs further down the road.

It also pays to learn how to do some basic repairs yourself as well as conducting simple upkeep such as doing a monthly oil check. A few minutes of time can make quite the difference.

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“Thieves steal new cars. I don’t need insurance

A misconception about car theft is that thieves are only after new cars. Not true – car love knows no bounds with the criminal type.

In reality, thieves are more likely to steal older and more trustworthy vehicles because there’s a large demand for their parts. A newer car has been in the market for less time and so the demand for its parts has not grown to the extent of that for older cars.

So, even if you are driving a second-hand car, you might want to consider comprehensive car insurance. Usually, you’ll have some insurance coverage for theft included within a policy like this – but always check the fine print!

“CTP insurance covers damage to my car.”

Compulsory third party insurance (also known as CTP or green slip) is mandatory for every car driver in Australia and is typically included in the cost of car registration. It’s the most basic insurance you can get as a car owner. Often, young drivers and insurance newbies think CTP covers everything – but that’s one of the most dangerous car insurance myths out there.

CTP only covers the damage or injury your car causes to another person. So in an accident, this means you won’t have to pay out of pocket for damage caused to another person. But the cost of the damage you cause to your own car won’t be covered. Comprehensive car insurance policy gives you much wider coverage and means your own car is covered too.

“Belongings in my car are covered by insurance”

Hands up if you often leave valuables inside your vehicle. Thought so. It’s something most of us do from time to time – life’s busy and it’s easy to forget. Leaving a laptop in the boot while you pop into the shop, or an expensive sporting item between practice sessions isn’t uncommon.

But most car insurance policies don’t cover personal property like mobiles, handbags, and laptops. Further, valuables left inside a vehicle make your car more vulnerable to theft. Even if you’re just running a five minute errand, take important belongings with you.

Better safe than sorry.

Somebody taking photo of car crash to make claim for car insurance

Fact, not myth: you can save on car insurance

You can help yourself save money on your car insurance premium by equipping yourself with facts. Oh, and if you always wanted to know whether women really get cheaper car insurance, we’ve got the answers to that too.

If you have questions about your policy then it’s best to talk to your provider to set the record straight. If they can’t answer your questions then look elsewhere. And if you’re taking out a new comprehensive car insurance policy, it’s always best to shop around. This applies whether you’re focused on the cheapest car insurance, the best value, or being covered for particular aspects.

Why not check out PD Insurance while you’re at it? We offer affordable comprehensive car insurance and pride ourselves on straightforward, no-nonsense policies which are designed to help you. Not confuse you!

Click below to get a quote for award winning car insurance.

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