At Ramey King Insurance, we hear it all the time:
- “I’ve got full coverage, so I’m good.”
- “I can’t switch carriers until my policy ends.”
- “Buying direct is always cheaper.”
These ideas sound convincing, but they’re myths—and believing them could leave you with coverage gaps, missed savings, or even costly surprises when you least expect it.
Insurance can feel complicated, but with the right information, you can make decisions that truly protect you, your family, and your wallet. Let’s set the record straight on a few of the biggest auto insurance myths we come across.
Myth #1: “Full coverage means everything is covered.”
Reality: The term full coverage is one of the most misleading phrases in insurance. Most of the time, when someone says they have full coverage, what they really have is:
- Liability coverage (to pay for injuries or damages you cause to others)
- Comprehensive coverage (for things like theft, fire, or hail)
- Collision coverage (to repair your vehicle after an accident)
But here’s what full coverage doesn’t usually include:
- Rental car reimbursement while your vehicle is being repaired
- Roadside assistance or towing
- Gap coverage if your car is totaled but you owe more than it’s worth
- Medical payments or personal injury protection, depending on your state
Imagine getting into an accident and finding out you have to pay out-of-pocket for a rental car for three weeks. Or learning that your totaled car leaves you on the hook for thousands because your loan balance is higher than your car’s value. That’s the danger of assuming “full coverage” means “everything.”
The takeaway? Always ask your agent to walk you through what’s covered—and what’s not—so you’re not caught off guard.
Myth #2: “I can’t switch carriers until my policy expires.”
Reality: This is one of the most common misunderstandings. The truth is, you can switch carriers at any time. Most insurance companies will refund the unused portion of your premium if you cancel mid-term.
In many cases, the savings from moving to a better policy outweigh any small cancellation fee. For example, if you’re paying $150 a month but find a better option for $110, that’s nearly $500 saved over the course of a year. Waiting until renewal just means leaving money on the table.
And switching doesn’t have to be a hassle—independent agencies like ours can handle the process for you, making sure there are no gaps in coverage during the transition.
Myth #3: “Direct carriers are always cheaper.”
Reality: It’s easy to assume that going direct—cutting out the middleman—will save you money. But in insurance, that’s not always the case.
Independent agencies like Ramey King Insurance often have access to multiple carriers, meaning we can shop around for the best fit. This gives you:
- Bundling discounts when you combine auto, home, or other policies
- Customized coverage that avoids paying for things you don’t need while protecting what matters most
- Personalized advice to help you avoid costly mistakes
A direct carrier can only sell you their one product line, which may not always be the best match. By contrast, an independent agency can compare across carriers and find the balance of price and coverage that truly works for you.
Sometimes the cheapest premium isn’t the smartest choice. A few extra dollars a month for better coverage could save you thousands after an accident.
Myth #4: “Red cars cost more to insure.”
Reality: We’ve all heard this one, but it’s just not true. The color of your car has no effect on your insurance premium.
What does matter?
- Your driving record
- Where you live and park your car
- The make, model, and year of your vehicle
- How often you drive and for what purpose
So if you’ve been avoiding that cherry-red sports car just because you think your insurance will skyrocket—rest easy. What your insurer cares about is how safe you are on the road and what kind of risk the vehicle itself presents.
Myth #5: “Minimum limits are enough.”
Reality: Every state has minimum insurance requirements, but those limits are often far too low to cover the true cost of an accident.
For example, Texas requires drivers to carry liability limits of 30/60/25 (that’s $30,000 per person, $60,000 per accident for bodily injury, and $25,000 for property damage). That might sound like plenty, until you consider:
- Medical bills can easily exceed $30,000 per person in a serious accident.
- The average cost of a new car is now over $40,000—well above the $25,000 property damage minimum.
- If damages exceed your limits, you’re personally responsible for the rest.
One major claim could put your savings, income, or even your home at risk. That’s why it’s smart to work with an agent who can recommend higher limits that better protect your financial future.
The Bottom Line
Insurance myths spread quickly because they’re simple, easy to repeat, and sound like common sense. But in reality, relying on them can leave you underinsured or overpaying.
Whether it’s auto, home, or specialty coverage, our job at Ramey King Insurance is to cut through the confusion. We work with trusted carriers, take the time to understand your needs, and give you honest advice—not cookie-cutter solutions.
If it’s been a while since you reviewed your auto policy, now is a great time. A quick conversation could uncover hidden gaps, identify savings, or simply give you peace of mind that your coverage is working as hard as you do.
No pressure—just smart coverage, transparent guidance, and maybe a few more myth-busting facts along the way.
