March 11th marks Debunking Day, which makes it the perfect opportunity to clear up some long‑standing confusion around home and auto insurance. Many people make decisions based on misinformation or outdated assumptions, and that can leave them exposed to major financial risks when something unexpected happens.

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

Myth #1: Red cars cost more to insure

Plenty of drivers still believe car color affects insurance rates, but that simply isn’t true. Insurers never consider the color of your vehicle when determining your premium. Instead, they look at details such as the vehicle’s make, model, age, safety features, and engine type. Your driving history and where you live and drive also play a major role. No matter how bright the paint job is, color doesn’t influence what you pay.

Myth #2: Only homes in flood zones need flood insurance

Flooding can occur almost anywhere—even in areas considered low risk. In fact, roughly one-quarter of all flood insurance claims come from homes outside designated flood zones. What surprises many homeowners is that standard homeowners policies do not include flood protection. If your area gets rain (and most do), flood insurance deserves a serious look, regardless of your ZIP code.

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

While older vehicles do lose value over time, that doesn’t automatically mean you should drop important coverage. Nearly every state still requires liability insurance, no matter how old your car is. And if you rely on your vehicle daily or couldn’t easily pay for major repairs or replacement after an accident, collision and comprehensive coverage may still be worth keeping. The age of the car is only one part of the equation.

Myth #4: Homeowners insurance covers everything you own

Homeowners policies typically include personal property protection, but that coverage is usually capped at a percentage of your home’s insured value. High‑value items—such as jewelry, artwork, collectibles, or upscale electronics—can easily exceed those limits. If you want full protection for special belongings, you may need to list them individually or add supplemental coverage.

Myth #5: Anyone driving your car is automatically covered

Your policy may extend to occasional drivers who have your permission to use your car, but there are important exceptions. If someone uses your vehicle regularly or drives it for work—such as delivery services or ridesharing—they may not be covered under your standard policy. Before handing over your keys, make sure your insurance truly applies to the situation.

Myth #6: A strong savings account makes homeowners insurance unnecessary

Even a well‑funded emergency account may not be enough to cover the financial impact of a major loss. Homeowners insurance protects far more than just the structure of your home. It includes liability coverage if someone gets hurt on your property, reimbursement for living expenses if your home becomes uninhabitable, and coverage for personal belongings. With the average cost to rebuild a home exceeding $320,000, going without insurance can be a dangerous gamble.

Myth #7: Car insurance always covers rental vehicles

Many personal auto policies do extend coverage to rental cars, but only when the rental is used for personal purposes. If you’re renting for a business trip or commercial use, your personal policy may not apply. It’s always wise to check your coverage before turning down the rental company’s insurance at the counter.

Myth #8: Credit scores don’t affect insurance premiums

In many states, insurers use credit‑based insurance scores to help determine premiums. The reason is statistical: certain credit behaviors can correlate with claim risk. If your credit score has seen an improvement recently, it’s worth discussing it with your insurance agent—you may qualify for a more favorable rate.

Smart ways to prevent coverage gaps

Taking a proactive approach to your insurance can help you avoid unpleasant surprises down the road. Consider these helpful practices to stay protected:

• Review your policy every year, especially after major life changes.
• Ask your agent about policy exclusions—understanding what isn’t covered matters just as much as what is.
• Keep an updated inventory of your belongings or photos of your vehicle to simplify future claims.
• Learn the difference between “replacement cost” and “actual cash value,” since each type impacts your potential payout.

It’s also worth asking yourself: “If I had to file a claim tomorrow, would I be financially prepared?” If the answer is no—or even “I’m not sure”—a policy review can provide clarity and peace of mind.

Key moments to revisit your insurance coverage

Life evolves quickly, and your insurance should evolve right along with it. Consider reassessing your coverage when:

• You buy or sell a home or vehicle
• You complete a renovation or major upgrade
• You get married, divorced, or welcome a child
• A teen or new driver joins your household
• You begin a business or side gig
• Your income, credit score, or general financial situation changes

Whether you’ve believed one of these insurance myths or simply want to ensure your coverage still fits your needs, now is an excellent time to take a closer look. Staying informed helps prevent gaps and ensures you’re prepared for whatever life brings.

Our team is here to support you in making confident, informed decisions. Reach out anytime to schedule a quick, pressure‑free policy review.