March 11th is Debunking Day, making it the perfect moment to clear up some long-standing misconceptions about home and auto insurance. Many people base their decisions on misunderstandings or outdated information, and unfortunately, that can lead to costly surprises when an unexpected event occurs.

To help you stay informed and properly protected, we’re breaking down eight widespread insurance myths and what you should really know instead.

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

The truth: The color of your car has no impact on your insurance premium. Insurers focus on details like the vehicle’s make, model, age, engine type, safety features, and how often you drive—as well as your driving record. Paint color simply isn’t part of the equation.

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

The truth: Flooding doesn’t discriminate. Roughly a quarter of flood-related insurance claims come from outside recognized high-risk areas. Even more surprising, most standard homeowners insurance policies do not include flood protection. If your area receives rainfall—and chances are it does—it’s worth exploring flood insurance as an added safeguard.

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

The truth: While older vehicles do lose value, that doesn’t automatically mean you should drop important coverage. Most states still require liability insurance regardless of the car’s age. And if you rely heavily on your vehicle or couldn’t afford a major repair or replacement after an accident, collision and comprehensive coverage could still play a crucial role in your financial protection.

Myth #4: “My homeowners policy covers every item I own.”

The truth: Homeowners insurance includes personal property coverage, but that protection comes with limits. High-value items—such as fine jewelry, rare collectibles, specialty equipment, or upscale electronics—may exceed those limits. To fully protect these belongings, you may need to schedule them individually through added endorsements or supplemental policies.

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

The truth: Coverage for other drivers isn’t always straightforward. Your policy may extend to occasional drivers who have your permission, but exclusions often apply—especially for business use, delivery services, or rideshare activities. If someone consistently drives your car or uses it for work purposes, check your policy to make sure they’re fully insured.

Myth #6: “I don’t need homeowners insurance because I have strong savings.”

The truth: Even a well-funded savings account can fall short in the face of a major loss. Homeowners insurance goes far beyond repairing the structure of your home. It also includes liability protection if someone gets hurt on your property, coverage for your belongings, and assistance with living expenses if your home becomes temporarily uninhabitable. With the average cost to rebuild a home now exceeding $320,000, skipping insurance is a major financial gamble.

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

The truth: Many personal auto policies extend coverage to rentals, but usually only for personal use. If you rent a car for business-related travel or commercial activities, your personal coverage often won’t apply. Before turning down the rental agency’s insurance option, confirm what your policy truly covers.

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

The truth: In many states, insurers use credit-based insurance scores as one factor when determining premiums. These scores help carriers assess risk based on statistical trends. If your credit has improved, it’s worth talking to your insurance agent—you may qualify for more favorable rates.

Quick Tips to Prevent Coverage Gaps

Staying ahead of potential insurance gaps can save you from stressful and expensive situations later. Here are some helpful habits to keep your coverage strong:

• Review your policy once a year, especially after big milestones or changes in your life.
• Ask your agent about any exclusions—understanding what isn’t covered is just as important as knowing what is.
• Create an inventory of your belongings, including photos and values, to simplify future claims.
• Learn the difference between “replacement cost” and “actual cash value,” as these terms affect how much you’d receive after a loss.
• Consider whether you’d be financially prepared to file a major claim tomorrow—if not, adjust your coverage accordingly.

When to Revisit Your Insurance Coverage

Your life evolves—your insurance should evolve with it. Reassess your policy when you experience events such as:

• Buying or selling a home or vehicle
• Completing renovations or significant upgrades
• Major life changes like marriage, divorce, or welcoming a child
• A new driver joining your household (especially teenagers!)
• Starting a business or side hustle
• Changes to your income, credit score, or financial stability

Whether you’ve believed one of these myths or simply want confidence that your coverage still aligns with your needs, now is a great time to take a closer look at your policies. We’re here to help you make informed decisions and prevent unexpected gaps in protection.

Reach out today to schedule a quick, friendly policy review—no pressure, just guidance.