Many people carry long-held beliefs about home and auto insurance that simply aren’t true. These misconceptions can leave you exposed to unexpected costs when a claim arises. In recognition of Debunking Day on March 11, this guide breaks down eight widespread myths and explains what you should know instead.

Below, you’ll find a fresh look at these common misunderstandings and practical tips to help you feel more confident in your coverage decisions.

Myth #1: Red Cars Cost More to Insure

It’s a popular claim, but vehicle color has no influence on your auto insurance rate. Insurers focus on factors such as your car’s model, safety features, age, engine size, mileage, and your driving record. The paint color isn’t considered when premiums are calculated.

Myth #2: Only Homes in Flood Zones Need Flood Insurance

Flooding can impact far more areas than designated high-risk zones. Roughly one-quarter of flood-related claims originate outside these mapped regions. Because standard homeowners policies rarely include flood protection, it’s worth exploring coverage if your area experiences any level of rainfall.

Myth #3: Older Vehicles Don’t Need Full Coverage

While older cars may not hold the same value as new ones, liability coverage remains mandatory in most states regardless of age. If you rely heavily on your vehicle and couldn’t afford major repair or replacement costs, maintaining collision and comprehensive coverage may still be a smart choice.

Myth #4: Homeowners Insurance Covers Every Belonging

Although homeowners policies offer personal property coverage, there are limits based on a percentage of your home’s insured value. Items like jewelry, collectibles, artwork, or high-end electronics can easily exceed standard amounts. For these valuables, you may need separate scheduling or endorsements to secure full protection.

Myth #5: Anyone Driving My Car Is Fully Covered

Coverage for other drivers isn’t always guaranteed. Many policies extend protection to occasional drivers with your permission, but restrictions often apply, especially for business activities like deliveries or ridesharing. If someone routinely drives your car or uses it for work, check your policy to ensure they’re properly insured.

Myth #6: Strong Savings Make Homeowners Insurance Unnecessary

A well-prepared emergency fund is helpful, but it may not come close to covering the cost of a major loss. Homeowners insurance includes essential benefits such as liability protection, loss of use coverage, and reimbursement for personal belongings. With rebuilding costs surpassing $320,000 in many places, opting out of coverage is a significant gamble.

Myth #7: Personal Auto Insurance Always Covers Rental Cars

Many auto policies extend to rental cars, but only for personal use. Rentals used for work or commercial purposes may not be covered under your primary policy. Before rejecting the rental company’s insurance offer, verify what your own policy includes.

Myth #8: Credit Scores Don’t Affect Insurance Rates

In several states, insurers consider a credit-based insurance score when determining premiums. Research shows a connection between credit patterns and risk, which is why this factor may be used. If your credit has improved, it may be worth discussing potential rate adjustments with your agent.

Tips to Stay Fully Protected

Taking a proactive approach to reviewing your insurance can prevent unwelcome surprises. Here are simple steps to keep your coverage on track:

• Review your policies once a year, especially after big life or property changes.
• Ask your agent about exclusions so you understand what isn’t covered.
• Keep a current inventory of belongings or document vehicle details to streamline future claims.
• Learn the difference between replacement cost and actual cash value—they affect your payout after a loss.

A good question to reflect on is: Would you be financially prepared if you had to file a claim tomorrow?

When to Revisit Your Insurance Policies

Your insurance needs change as your life evolves. Make time to review your coverage if:

• You purchase or sell a home or vehicle.
• You complete a renovation or major home improvement.
• Your family structure changes through marriage, divorce, or a new child.
• A teen or new driver joins your household.
• You start a business or take on new side work.
• Your income, credit score, or financial situation shifts significantly.

Whether you’ve believed one of these common myths or simply want confidence in your coverage, there’s no better moment to reassess your policies. Taking time to understand your protection now can help prevent surprises later.

If you’d like help making sense of your options or want a simple policy checkup, reach out anytime. A quick, no-pressure review can help ensure you’re fully protected where it matters most.