With Debunking Day coming up on March 11th, there’s no better opportunity to clear up some of the biggest misconceptions surrounding home and auto insurance. Many people still rely on outdated assumptions or half-true information, and unfortunately, those misunderstandings can lead to costly surprises when it’s time to file a claim.

Let’s walk through eight persistent insurance myths and uncover what’s actually true—so you can make confident, informed decisions about your coverage.

Myth #1: “Red cars cost more to insure.”

The truth: The color of your car doesn’t play any role in your insurance premium. Insurers care about things like the vehicle’s age, make and model, safety features, how often it’s driven, and your driving record. The paint color? It makes no difference at all.

Myth #2: “I only need flood insurance if I live in a designated flood zone.”

The truth: Flooding isn’t limited to high‑risk regions. In fact, roughly one-quarter of all flood claims come from areas outside official flood zones. And since most standard homeowners policies don’t cover flood damage, it’s worth considering additional protection if there’s any chance of heavy rain where you live.

Myth #3: “An older car doesn’t need full coverage.”

The truth: While older cars may have lower market value, that doesn’t automatically mean you should drop important coverage. Liability insurance is still required in most states, regardless of how old your vehicle is. And if losing your car would put you in a financial bind, maintaining collision or comprehensive coverage may still be a smart move.

Myth #4: “My homeowners insurance covers everything in my house.”

The truth: Personal belongings are covered under your homeowners policy, but only up to certain limits—usually tied to a percentage of your home’s insured value. High-value items like fine jewelry, collectibles, or expensive electronics may exceed those limits. To fully protect them, you may need to list (“schedule”) these items separately with add-on coverage.

Myth #5: “Anyone who drives my car is fully covered under my policy.”

The truth: Your policy may extend coverage to people you occasionally allow to drive your car, but there are important exceptions. Business use, delivery driving, and ridesharing often require different coverage altogether. If someone regularly uses your car or drives it for work, you’ll want to confirm they’re properly insured.

Myth #6: “If I have a strong savings account, I don’t need homeowners insurance.”

The truth: A solid emergency fund is helpful, but it may not be enough to cover a major loss. Homeowners insurance does far more than insure the building—it also includes liability protection, coverage for your belongings, and help with living expenses if your home becomes uninhabitable. Considering the average cost to rebuild a home now exceeds $320,000, skipping insurance is a significant gamble.

Myth #7: “My auto insurance automatically covers rental cars.”

The truth: Many personal auto policies extend to rental vehicles—but typically only for personal use. If you rent a car for business travel or commercial work, your personal policy may not apply. It’s always smart to double-check before turning down rental company coverage.

Myth #8: “My credit score doesn’t affect my insurance rates.”

The truth: In many states, insurers consider a credit-based insurance score when determining your premium. This is because credit trends can statistically align with risk levels. If your credit has recently improved, talk with your agent—you might qualify for a lower rate.

Quick Ways to Prevent Coverage Gaps

Staying proactive with your insurance can prevent big surprises later. Here are a few helpful habits to keep yourself protected:

• Review your policy every year, especially after major life events.
• Ask your agent about exclusions—understanding what isn’t covered is just as important as knowing what is.
• Keep an inventory of your belongings or maintain updated photos and records to make future claims easier.
• Learn the difference between “replacement cost” and “actual cash value”—this impacts how much you’ll receive after a loss.

It’s also worth asking: “Would I be financially prepared if I needed to file a claim tomorrow?”

When You Should Revisit Your Insurance Coverage

Your life changes—and your insurance should adapt to those changes. Think about reviewing your policies when:

• You buy or sell a home or vehicle
• You complete major upgrades or renovations
• You get married, divorced, or welcome a new child
• A teen or new driver joins your household
• You begin a side business or launch a new venture
• Your income, credit score, or financial situation shifts significantly

Whether one of these myths sounded familiar or you simply want to ensure your coverage still fits your lifestyle, now is an excellent time to take a closer look. We’re here to help you navigate your options, understand your policies, and avoid unwelcome surprises. Reach out anytime to schedule a quick, pressure-free review of your insurance coverage.