Car insurance rates vary by the individual. People might experience different rates even if they are the same age, gender, live in the same area, and even have similar driving records. There are some concrete factors that affect rates and coverage, but there are also some factors that don't actually affect rates and coverage in the way you might think. 

Sometimes, when you think your insurance covers you, you might find out the hard way that you aren't as protected as you thought. Here are some common misconceptions about car that you should know about as you shop for both cars and coverage. 

1. Some car colors cost more to insure. 

For some reason, this myth is one that people continue to believe. People assume that red cars are somehow more costly to insure. However, car color has no bearing on your car's risk factor accidents. A blue car, red car, or green car of the same make and model would have comparable insurance rates determined by risk factor and safety reports. 

There is one way where you car color could indirectly affect your rate. Some high-end cars have custom paint colors and finishes that are more costly to repair in the even of an accident. However, the color of the finish itself doesn't matter, just the cost of matching and refinishing a car that has a custom paint job. 

2. You'll pay more for insurance if you are a senior. 

Some seniors might see a rate hike as they age, but this is not as common as you might think. In fact, because seniors are often commuting less, driving safer cars, and transporting fewer passengers, they can see insurance rates drastically decline.

Also, some insurance companies offer senior drivers with clean driving records discounts because they are safe, low-risk customer. If you have health concerns that prevent you from safely driving, you won't be on the road as it is. 

3. Car insurance covers all damages.

Some people make the mistake of not fully insuring their car. They get the minimum insurance required, only to find out later that the minimum coverage does not provide payment for some types of damages. For example, some people might carry a liability only policy, which is required by law for most drivers. This means you are protected from being personally sued in a car accident, and your insurance can cover damages to drivers when you are at fault. However, the liability policy won't cover your own damages or injuries. Fire and theft policies will cover damage from thieves and some natural disasters, but these policies have limits as well.

To make sure you have the right coverage for your vehicle, talk to an agent about comprehensive and full collision coverage. Keep in mind, however, that spending on your car, you might not need such extensive insurance. If your car is not worth very much money, you might prefer to have limited coverage, saving the difference to help yourself pay for a newer, better car. 

4. Insurance is insurance, no matter what the car is used for.

This is a common mistake that people can make, and it can be costly. If you use a personal vehicle for business, and the business use is what causes damage to the car, your insurance might not cover it. Business coverage is different than personal coverage. For example, if you run a childcare business from your home and use your vehicle to take children on field trips and other excursions, that is a business use of the car. In the event of an accident, you might not be able to fully recoup losses because you weren't insured for business use. Whenever you use your own car for a personal business, make sure you let your insurance company know. You need to have the right insurance for you vehicle use.