With Debunking Day landing on March 11th, it’s the perfect opportunity to clear up some long-standing misunderstandings about home and auto insurance. A lot of people make decisions based on misinformation that’s been passed around for years, and unfortunately, those misconceptions can come back to haunt you when you need coverage the most.

To help you stay protected, here’s a fresh look at eight widespread insurance myths—and what’s actually true.

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

The reality: The color of your car makes absolutely no difference to your insurance rate. Insurers focus on measurable factors like the vehicle’s age, model, engine type, safety ratings, how often you drive, and your driving record. Whether your car is red, black, or neon green, the color isn’t part of the equation.

Myth #2: “Flood insurance is only necessary in flood zones.”

The reality: Flooding isn’t limited to high‑risk areas. In fact, roughly one-quarter of all flood insurance claims come from locations outside of designated flood zones. Adding to that, most standard homeowners policies do not cover flood-related damage. If your area gets rainfall (and almost all do), flood insurance deserves consideration.

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

The reality: While older vehicles typically decline in value, that doesn’t automatically mean you should skip comprehensive or collision coverage. Liability coverage is still required in most states, regardless of your car’s age. And if losing your vehicle or paying for significant repairs out of pocket would cause financial strain, maintaining broader coverage may still be a smart choice.

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

The reality: Homeowners policies do protect personal belongings, but only up to certain limits. Items like luxury jewelry, rare collectibles, and high‑end electronics can easily exceed those built‑in caps. To ensure full protection, you may need to list high‑value items individually through endorsements or separate policies.

Myth #5: “Anyone who drives my car is automatically insured.”

The reality: While your policy may cover someone who occasionally borrows your car with permission, there are important exceptions. Driving for commercial purposes—such as delivery jobs or rideshare work—is often excluded. And if another person regularly uses your vehicle, you’ll need to confirm they’re listed on your policy to avoid unpleasant surprises later.

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

The reality: Even a strong savings cushion might not be enough to handle the financial fallout from a major loss. Homeowners insurance provides far more than coverage for the structure itself—it also includes liability protection, help with living expenses if your home becomes uninhabitable, and coverage for belongings. With the average rebuild cost exceeding $320,000 today, going without insurance can be a massive gamble.

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

The reality: Many personal auto policies do extend to rental vehicles—but only for personal use. If you’re renting a car for work travel or business activities, that coverage often doesn’t follow you. Always verify your policy details before turning down the rental company’s insurance.

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

The reality: In several states, insurers use credit‑based insurance scores when determining premiums. That’s because trends in credit behavior can correlate with risk patterns. If your credit has improved recently, it’s worth reaching out to your agent—you may be eligible for a better rate.

Quick Ways to Prevent Coverage Gaps

Taking a proactive approach to your insurance can save you time, stress, and money down the road. Keep yourself well‑protected by:

• Reviewing your policy once a year, especially after major life events.
• Asking your agent to explain exclusions so you’re fully aware of what isn’t covered.
• Documenting your belongings or snapping photos of your car to simplify future claims.
• Understanding the difference between “replacement cost” and “actual cash value,” as these impact claim payouts.

It’s always worth asking yourself: Would I be okay financially if I had to file a claim tomorrow?

When It’s Time to Revisit Your Insurance Coverage

Life evolves quickly, and your insurance should evolve right along with it. Consider updating or reviewing your policy whenever:

• You purchase or sell a home or vehicle.
• You complete a major renovation or home improvement project.
• Your family situation changes—marriage, divorce, or welcoming a new child.
• A new driver joins your household (especially teens!).
• You launch a business or begin a side gig.
• Your financial situation, including your income or credit score, shifts significantly.

Whether you’ve believed one of these myths or simply want confidence that your coverage still fits your life, now is the perfect moment to take another look. Our team is here to guide you through your options, answer questions, and help you avoid unexpected gaps.

Reach out anytime to schedule a no‑pressure review and make sure you’re fully protected.