Many car owners are confused by common misconceptions and unfamiliar terms. Here’s how to find the best coverage (and the best price) for your vehicle.

Whether you shop online or use an agent, buying an auto insurance policy is complicated.

While the internet makes it simple to compare policies and rates, it’s still easy to get confused by all the unfamiliar terms and jargon insurance companies use. The decision-making process is also clouded by longstanding misconceptions — or myths — about how insurance works.

For example: A lot of people mistakenly believe red cars cost more to insure.

“That’s not the case. What drives up rates are things like speeding and accidents,” said Loretta Worters, vice president of media relations at the Insurance Information Institute. “So, if you have a red car and you speed and get a ticket, or have an accident, those are reasons for a rate increase, not because you drive a red car.”

Insurance companies consider a lot of factors about the vehicle when setting their premiums — including the make and model, age, body type, engine size, the cost to repair and the likelihood of being stolen — but not the color.

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