Car insurance is one of those bills everybody pays and few people understand. That's fertile ground for myths, and right now the stakes are higher: Insurify's 2026 mid-year report projects rate increases in 32 states by year's end, after prices dipped in parts of 2025. Let's separate what's true from what just gets repeated at family dinners.
Where rates stand
Insurify's August 2026 data puts the average full-coverage policy at roughly $187 a month nationwide, and liability-only at about $98. Rates were steady over the summer, but the spread between states is enormous. Maryland ($303) and Rhode Island ($299) sit at the top for full coverage, while New Hampshire ($84) is at the bottom. Treat these as averages; your own price depends on dozens of personal factors.
Average monthly full-coverage car insurance costs vary widely by state.
Year-end projections vary too. Insurify expects Connecticut rates to rise another 4% after a 10% increase earlier this year, West Virginia 3%, and a group including Delaware, Virginia, Washington, D.C., Kentucky, Nevada, Wyoming and Illinois about 2% each. Kentucky has already climbed 7% this year. A few states are expected to dip: New Mexico (-3%), and Arkansas, Minnesota and Colorado (-2% each).
Myth 1: "My rate only goes up if I get a ticket or crash."
Fact: Your rate can rise with no change to your driving record. Insurers reprice based on repair costs, medical costs, claims frequency in your area, theft and weather losses. When expenses go up for everyone in your ZIP code, your premium can follow. That's why a renewal notice that jumps isn't necessarily about you, and why it's worth shopping even when your record is clean.
Myth 2: "Staying loyal to one insurer earns the best price."
Fact: Insurers use different formulas, so the company that was cheapest for you three years ago may not be today. Long tenure sometimes earns a small discount, but it rarely beats the savings from comparing. Get quotes from at least three to five companies, or use an independent agent, at every renewal. Make sure you compare the same coverage limits and deductibles on each quote, or you're comparing apples and oranges.
Myth 3: "Full coverage means everything is covered."
Fact: "Full coverage" isn't a formal policy type. It's casual shorthand for liability plus collision plus comprehensive. Even then, there are limits, deductibles and exclusions. Rideshare driving, delivery work, racing and intentional damage may not be covered at all without special endorsements. Rental car reimbursement, roadside help and gap coverage are extras you add on separately.
Myth 4: "State minimum liability is enough."
Fact: Minimums are set by law, not by what accidents actually cost. A serious crash with injuries can exceed the minimum limits quickly, and then you're personally on the hook for the rest. Many advisers suggest carrying higher limits, especially if you own a home or have savings to protect, and consider an umbrella policy for extra protection. Raising limits is often cheaper than people expect.
Myth 5: "Red cars cost more to insure."
Fact: Color isn't a rating factor. What matters is the vehicle's make and model, its safety features, repair costs and theft rates. The factors Insurify lists as drivers of cost are your driving record, age and experience, gender (in states where it's allowed), location, credit history, annual mileage, vehicle, and your coverage type, limits and deductible.
Myth 6: "Credit doesn't affect car insurance."
Fact: In most states, insurers use a credit-based insurance score as one rating factor. A few states restrict or ban the practice. If you live somewhere that allows it, paying bills on time and keeping card balances low can help over time. Check your credit reports for errors, and dispute anything wrong.
Myth 7: "Telematics always saves money."
Fact: Usage-based programs track braking, speed, mileage and time of day. Safe drivers often earn discounts, but some programs can raise your rate if the data looks risky, and they involve sharing driving data. Read the terms, find out whether a bad score can increase your price, and ask what happens to the data. Try it only if you're comfortable with the trade.
Myth 8: "An accident that isn't my fault won't affect my price."
Fact: It depends on the insurer and state. Some companies can surcharge or reduce discounts after any claim, even when you weren't at fault, though many states limit surcharges for not-at-fault accidents. Ask your agent how your insurer treats them before you file a small claim you might pay yourself.
What actually helps
Five practical levers for lowering a car insurance bill without gutting your protection.
- Shop at every renewal and whenever life changes: a move, a new car, a marriage, a job that shortens your commute.
- Raise your deductible on collision and comprehensive to an amount you could pay from savings tomorrow.
- Ask for discounts by name: bundling, multi-car, safe driver, low mileage, defensive-driving course, good student, anti-theft and advanced safety features. Many aren't applied automatically.
- Review older cars. If a car's value is low enough that you could replace it from savings, collision coverage may cost more than it's worth.
- Keep continuous coverage. Gaps can raise your rates.
- Tell your insurer when things change, like working from home or driving fewer miles.
Before you buy a car
Ask for insurance quotes on the exact models you're considering. Two similar-looking vehicles can differ by hundreds of dollars a year in premiums, which belongs in your monthly budget alongside the loan payment, fuel and maintenance.
The bottom line
Rates are headed up in a lot of states, and the best defense is informed shopping rather than assumptions. Compare equal coverage, challenge the myths you've heard, and keep adequate liability limits even if it costs a little more. A cheap policy that doesn't pay when you need it isn't cheap.
Sources
- Insurify: Average car insurance rates, September 2026 (August data)
- Insurify: Car insurance costs climb in the first half of 2026
This article is general education and not insurance advice. Average rates are approximate, and rating rules vary by state and insurer; compare quotes and confirm details with a licensed agent.