Many homeowners and drivers make insurance decisions based on misunderstandings that have been passed around for years. Unfortunately, relying on incorrect information can leave you facing unexpected expenses when you need coverage the most. With Debunking Day on March 11th, it’s the perfect opportunity to clear up some of the most persistent myths surrounding home and auto insurance.

Below, you’ll find eight common misconceptions and what the facts actually show, helping you make smarter decisions about your protection.

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

The idea that car color affects insurance prices continues to circulate, but it simply isn’t true. Insurance carriers don’t consider the shade of your vehicle when calculating your premium. Instead, your rate is influenced by things like the vehicle’s make and model, its age, safety features, engine performance, where it’s driven, and your personal driving record. Color has no bearing on your costs.

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

Many people assume flooding only affects those in designated high‑risk zones, but the data doesn’t support that belief. Roughly one‑quarter of flood insurance claims originate from areas outside those marked zones. Additionally, standard homeowners insurance policies almost never cover flood damage. If your area gets any amount of rain, adding flood insurance to your protection plan is worth evaluating.

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

It’s true that an older vehicle may be worth less than a newer model, but that doesn’t automatically mean you should drop important coverage. Nearly all states still require drivers to maintain liability insurance, no matter how old a car is. And if you depend on your vehicle and couldn’t easily pay for major repairs or replacement after an accident, keeping collision and comprehensive coverage may still be the right choice.

Myth #4: “Homeowners insurance protects everything in my house.”

While homeowners insurance includes personal property coverage, there are limits—usually tied to a percentage of your home’s insured value. Certain items such as jewelry, sports memorabilia, collector pieces, and expensive electronics may exceed those limits. To fully protect high‑value belongings, you may need separate scheduled coverage or additional endorsements tailored to those items.

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

Many policies do extend coverage to people who borrow your car on occasion, but the details aren’t always straightforward. Special situations—like business driving, commercial delivery, or rideshare work—can be excluded or limited. And if someone routinely uses your vehicle, they may need to be formally listed on your policy to ensure they’re fully protected.

Myth #6: “Good savings mean I don’t need homeowners insurance.”

Having a strong emergency fund is helpful, but it often isn’t enough to cover the costs that come with a major disaster. Homeowners insurance goes far beyond rebuilding your house. It also includes liability protection, loss‑of‑use coverage if you can’t stay in your home, and coverage for personal belongings. With rebuilding costs averaging more than $320,000 today, skipping insurance could leave your finances extremely vulnerable.

Myth #7: “My auto policy automatically applies to rental cars.”

Some personal auto policies do extend to rentals, but that coverage usually applies only when the rental is for personal use. If you’re renting a vehicle for work travel or commercial reasons, your regular policy likely won’t apply. Before turning down the rental agency’s insurance, it’s always wise to confirm what your existing policy does and doesn’t cover.

Myth #8: “Insurance rates aren’t affected by my credit score.”

In many states, insurers are allowed to use a credit‑based insurance score as one factor when determining your premium. Studies show that certain credit patterns correlate with the likelihood of filing claims. If your credit has improved recently, a conversation with your agent may lead to better pricing on your policy.

Smart Ways to Prevent Coverage Gaps

Taking small steps now can help ensure you’re not caught off guard later. Here are a few proactive habits that can keep your coverage on track:

• Look over your policies every year, especially after major life updates.
• Ask your agent about exclusions so you’re clear on what isn't protected.
• Keep a record of belongings or photos of your vehicle to simplify future claims.
• Learn the difference between replacement cost and actual cash value—this can significantly affect what you receive after a loss.
• Regularly ask yourself whether you’d be financially stable if you had to file a claim today.

When It’s Time to Revisit Your Insurance

Life changes quickly, and your insurance should adjust accordingly. Consider reviewing your coverage whenever one of the following occurs:

• You buy or sell a home or vehicle.
• You finish a major home improvement or renovation.
• Your family situation changes, such as marriage, divorce, or the arrival of a child.
• A new driver—especially a teenager—joins your household.
• You launch a small business or side job.
• Your financial situation, credit score, or income shifts.

Whether you’ve believed one of these myths or simply want peace of mind about your current protection, now is an ideal moment to take a closer look at your coverage. Understanding the truth behind these misconceptions can help you avoid gaps and make confident decisions about your home and auto insurance.

If you’re ready to review your policies or have questions about the right coverage, reach out anytime for a quick, no‑pressure conversation.