Car insurance is essential, but do you know what's fact or fiction when it comes to your policy? According to Statista, millennials were two times as likely to pay their insurance online as baby boomers. Insurance can be hard to understand, especially when you're handling it online rather than over the phone. Check out these five car insurance myths to learn more about your policy.

1. Car Color Affects Insurance Costs

You might have heard that certain car colors are more likely to get ticketed, including bright colors like red. When it comes to your insurance policy, the color of your car has no effect on the cost of your monthly premium, so you can choose any color you want without worrying about paying more for insurance.

2. You Only Need Liability Insurance

While liability auto insurance is the only type of coverage you're legally required to have, drivers should carry more coverage for their cars. Liability coverage won't pay for damage to your vehicle, and you're actually required to have full coverage if you're still paying off your car loan.

3. Credit Doesn't Affect Insurance Cost

There's no guarantee that having a good credit score will lower insurance costs, but your credit score can absolutely affect your insurance premium. People who have high credit scores typically pay less for their auto insurance because they're deemed less of a risk to insure. Most people aren't aware of this.

4. Auto Insurance Covers Other Types of Damage

It's true that auto insurance can cover damage such as theft, damage from falling tree limbs, and fire damage. However, what most people don't tell you is that you have to purchase this coverage separate from your standard collision coverage. If you want full protection for your car, make sure you talk to your insurance agent about comprehensive coverage.

5. Personal Insurance Covers Business Use of Cars

Just because you have a personal insurance policy for your car doesn't mean it's covered for business use. If you're going to use a personal vehicle for business purposes, make sure you have business insurance so you're protected in the event of an accident.

Auto insurance can be confusing, especially if you listen to all the myths people are constantly repeating. Fortunately, these five myths can help you learn a little more about your insurance policy. If you don't have the right coverage for your needs, call FLB Insurance Agency today to find out more and get a quote.