Introduction

With Debunking Day coming up on March 11, it’s the perfect moment to clear up some long‑standing confusion around home and auto insurance. Many people make decisions based on outdated assumptions or hearsay, and unfortunately, those mistakes can turn into costly surprises when they least expect it.

To help you stay protected, we’ve taken eight of the most widespread insurance myths and unpacked what’s actually true. A little clarity can go a long way in making sure your coverage works the way you think it does.

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

The reality: Your car’s color plays no role in determining your insurance premium. Insurers look at details such as the vehicle’s make, model, age, safety features, repair costs, and your driving record—not the paint job. Whether it’s red, silver, blue, or any other color, it won’t change your rate.

Myth #2: “Flood insurance only matters if you live in a flood zone.”

The reality: Flooding isn’t limited to high‑risk areas. Roughly a quarter of all flood insurance claims are filed by homeowners who live outside designated flood zones. What makes this even more important is that standard homeowners insurance typically does not cover flood-related damage. If your area gets rain, it’s worth exploring a flood policy.

Myth #3: “Older cars don’t need full coverage.”

The reality: While older vehicles may not hold the same market value as newer ones, they still need proper protection. Most states require liability coverage regardless of how old your car is. And if you depend heavily on your vehicle—or couldn’t afford to repair or replace it after a major accident—collision and comprehensive coverage may still be crucial.

Myth #4: “My homeowners insurance covers everything I own.”

The reality: Homeowners insurance does include personal property coverage, but it generally comes with set limits based on a percentage of your home’s insured value. High‑value items—such as jewelry, collectibles, and specialty electronics—can easily exceed those limits. To fully protect them, you may need to add scheduled coverage or separate endorsements.

Myth #5: “Anyone driving my car is automatically covered.”

The reality: Coverage usually extends to people you allow to drive your car, but there are important exceptions. If the driver uses your vehicle for work, delivery services, or ridesharing, your policy might not cover incidents that occur during those activities. And if someone uses your car regularly, you may need to list them on your policy to avoid coverage gaps.

Myth #6: “A solid savings account means I don’t need homeowners insurance.”

The reality: Even a strong emergency fund may not withstand the financial shock of a major loss. Homeowners insurance does much more than protect the structure—it also covers liability, temporary living expenses if your home becomes uninhabitable, and your personal belongings. Considering that rebuilding a home now averages more than $320,000, skipping insurance can expose you to significant risk.

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

The reality: Many personal policies do extend coverage to rental vehicles, but typically only for personal travel. If you’re renting a car for business purposes, your policy likely won’t apply. Before declining the rental company’s coverage, it’s always wise to confirm what your policy does—and doesn’t—include.

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

The reality: In many states, insurers use credit-based scores as one factor in calculating premiums. These scores help predict overall risk, which can contribute to higher or lower rates. If your credit has improved, it may be worth checking in with your agent—you could qualify for better pricing.

Quick Tips to Avoid Costly Coverage Gaps

Taking a proactive approach to your insurance can help you stay protected when life surprises you. Here are a few smart steps that make a real difference:

• Review your policies at least once a year, especially after major life or property changes.
• Ask your agent to explain exclusions so you understand exactly what isn’t covered.
• Create a home or vehicle inventory—photos and itemized lists simplify claims tremendously.
• Know the difference between “replacement cost” and “actual cash value,” as they can greatly influence your payout after a loss.
• Consider whether you’d be financially comfortable if you had to file a claim tomorrow.

When to Revisit Your Insurance Coverage

Your life evolves—and your insurance should keep pace. It’s a good idea to reassess your policies when:

• You buy or sell a home or vehicle
• You complete a major renovation or home upgrade
• You experience life changes such as marriage, divorce, or welcoming a child
• A teen or new driver joins your household
• You launch a business or take on a side gig
• Your financial circumstances, including income or credit score, shift

Ready to Make Sure You’re Really Protected?

Maybe you’ve believed one of these myths in the past, or maybe you just want to confirm that your coverage still aligns with your needs. Either way, now is an excellent time to take a closer look. We’re here to help you make confident, informed decisions—without the stress or pressure.

Reach out anytime to schedule a quick, friendly policy review and ensure there are no unexpected gaps in your protection.