1. The more you pay, the better your policy
Insurance rates fluctuate drastically from policy to policy and person to person. One individual may pay hundreds of dollars more for the same policy as another individual because of differences in their personal information. For instance, an individual with an impaired driving charge may be completely denied coverage from one insurance company while being accepted and offered competitive rates at another.
2. Red cars cost more to insure
This is one of the most common insurance myths. Your auto insurance rates are calculated primarily on your driving record, make and model of vehicle, and the repair cost of your vehicle. The fact that your car is red has nothing to do with your insurance premiums. If it does, you should switch companies fast!
3. If a friend borrows my car and causes a collision, it won't affect my premiums
This is certainly false. Your insurance policy is tied to your vehicle; any collisions caused by a friend will be attached to your policy. For this reason, you should be very careful when lending your car out to a friend. There is nothing wrong with a friend borrowing your car from time to time, but keep in mind that your insurance premiums could go up if they cause a collision.