Myth and fact library
Auto policy myths, corrected
Plain explanations of the misconceptions we hear most often. Your own policy wording always controls.
- 01
Deductibles
Myth
My deductible applies to every claim I ever make.
Fact
Deductibles usually apply to physical damage coverages such as collision and comprehensive. Liability coverage, which pays others, typically has no deductible for you. Your declarations page lists each deductible.
- 02
Comprehensive vs. collision
Myth
Comprehensive coverage means I am covered for everything.
Fact
Comprehensive is a specific coverage, commonly for events like theft, hail, fire, falling objects, or hitting an animal. Collision is separate and generally covers damage from hitting another vehicle or object.
- 03
Lending a vehicle
Myth
Coverage follows the driver, so my friend's policy pays if they crash my car.
Fact
In many cases coverage is said to follow the vehicle first, meaning the owner's policy may respond before the driver's. Terms vary, so read the permissive use language in your own policy.
- 04
Household drivers
Myth
Only the person named on the policy needs to be listed.
Fact
Many policies ask you to disclose licensed household members or regular drivers. Leaving someone off can create questions at claim time. Your policy documents explain who must be listed.
- 05
Policy limits
Myth
State minimum limits are enough to cover any accident.
Fact
Minimum limits are the legal floor, not a measure of typical accident costs. Limits are often written as three numbers, such as 25/50/25, for per-person injury, per-accident injury, and property damage.
- 06
Claims
Myth
Filing a claim automatically means my policy will be canceled.
Fact
A single claim does not automatically end a policy. Renewal and pricing decisions follow each insurer's own rules and state regulations, which your policy and insurer can explain.
- 07
Roadside benefits
Myth
Every auto policy comes with towing and roadside help.
Fact
Roadside assistance is often an optional add-on. Check whether it appears as a listed coverage or endorsement on your declarations page.
- 08
Declarations page
Myth
The declarations page is just a cover sheet I can ignore.
Fact
The declarations page is a summary of your policy: named insureds, listed vehicles, drivers, coverages, limits, deductibles, and the policy period. It is the best first stop for answering coverage questions.