MISSION, Kan., Jan. 29, 2026 (GLOBE NEWSWIRE) -- (Family Features) Misinformation about auto insurance continues to circulate, leading many drivers to make decisions based on outdated or inaccurate assumptions.
“Even savvy drivers can be misled by insurance myths,” said Justin Yoshizawa, director of product management at Mercury Insurance. “Understanding what coverage actually does – and doesn’t – do can help people avoid unpleasant surprises after an accident.”
To help consumers stay informed, Mercury Insurance is sharing this lineup of auto insurance misconceptions that can affect coverage, cost and peace of mind – and the facts that stand in their place.
Myth No. 1: You Can Negotiate Your Auto Insurance Premium
Fact: Insurance rates aren’t like haggling for a car price. They’re calculated using approved rating formulas and risk models regulated by state insurance departments, so you can’t negotiate a lower rate directly with your carrier. What you can do is shop for discounts, adjust coverage levels or improve your risk profile to influence your premium.
Myth No. 2: You Don’t Need Medical Payments Coverage if You Have Health Insurance
Fact: Even if you carry health insurance, your auto policy’s medical payments or personal injury protection can still be valuable. These coverages may pay medical costs regardless of fault and can help cover expenses not covered by health insurance, including deductibles, co-pays, ambulance bills, lost wages and more, depending on state regulations.
Myth No. 3: Full Coverage Means You’re Covered for Everything
Fact: “Full coverage” is a common shorthand used to describe a policy that includes liability, comprehensive and collision coverage. Even with all three, coverage is still subject to limits, deductibles and exclusions, which means certain situations and expenses may not be covered unless additional protections are added.
Myth No. 4: All Insurance Companies are Basically the Same
Fact: Each insurer has different underwriting guidelines, risk models, discount structures, service levels and claims handling practices. Shopping only on price without comparing coverages and service reputation can lead to surprises when you need to file a claim.
Myth No. 5: A Not-At-Fault Accident Won’t Affect Your Rates
Fact: Even if you weren’t at fault, filing a claim can still influence your insurance score and possibly affect future pricing depending on your state and your carrier’s specific rating rules. Discuss the scenario with your agent before deciding whether or not to file.
Myth No. 6: New Cars are Always More Expensive to Insure
Fact: A new car often costs more to insure than an older one, but this isn’t automatic. A new vehicle with high-end safety features or strong crash-worthiness and theft-deterrent systems may be less expensive to insure than a different used model with poor safety ratings or costly repair costs.
Myth No. 7: Insurance Automatically Pays for a Rental After an Accident
Fact: Rental car reimbursement is an optional add-on. Unless you specifically select rental reimbursement coverage, your auto policy won’t pay for a temporary vehicle while yours is being repaired.
Myth No. 8: If Your Car is Totaled, Insurance Pays Off Your Loan or Lease
Fact: Car insurance settlement is based on the vehicle’s actual cash value at the time of loss, not what you originally paid – meaning depreciation can leave you owing money on your loan or lease even after a total loss. Gap insurance is a separate optional coverage that can help cover the difference.
“Dispelling myths is about more than just good information – it’s about building insurance confidence,” Yoshizawa said. “We want drivers to make choices based on reality, not rumor.”
To learn more and ensure coverage aligns with how and where you drive, visit MercuryInsurance.com.
Photos courtesy of Shutterstock
Michael French
mfrench@familyfeatures.com
1-888-824-3337
editors.familyfeatures.com
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