With Debunking Day arriving on March 11th, there’s no better moment to clear up some long-standing confusion about home and auto insurance. Many people base their coverage decisions on assumptions or outdated info—choices that can lead to costly surprises when something goes wrong.

To help you stay better protected, here’s a fresh look at eight widespread insurance myths—and the real facts you should rely on instead.

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

The reality: Your car’s color has absolutely no impact on your insurance premium. What insurers actually look at are measurable details such as the vehicle’s make and model, its age, safety features, engine size, how often it’s driven, and your driving record. Whether your car is bright red or plain gray doesn’t change a thing when it comes to your rates.

Myth #2: “Flood insurance is only necessary if I live in a high-risk flood zone.”

The reality: Flooding can happen almost anywhere, and roughly a quarter of flood-related claims originate outside designated high-risk zones. Even more surprising, most standard homeowners policies exclude flood damage altogether. If your area gets rainfall—as most do—it’s worth looking into flood insurance as an added layer of protection.

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

The reality: While older cars do decrease in value, coverage decisions shouldn’t be based on age alone. Nearly every state still requires liability insurance, regardless of how old your car is. And if you depend on that vehicle and wouldn’t be able to cover repairs or replacement out of pocket after an accident, collision and comprehensive coverage may still be a smart investment.

Myth #4: “My homeowners policy covers everything inside my home.”

The reality: Homeowners insurance does protect personal property, but only up to a certain percentage of your total coverage. High-value items—such as jewelry, collectibles, or expensive electronics—can exceed these limits quickly. To fully protect special items, you may need to schedule them separately or add specific endorsements.

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

The reality: Insurance doesn’t always follow the driver in the way many people assume. While occasional use with your permission is typically allowed, there are important exceptions. Business use, delivery work, and rideshare driving often require additional coverage. If someone uses your car regularly or for professional purposes, it’s important to confirm they’re properly insured.

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

The reality: Even a strong emergency fund may not withstand the financial impact of a major loss. Homeowners insurance covers far more than your structure—it also includes liability protection, coverage for personal belongings, and benefits that help if your home becomes temporarily uninhabitable. With average rebuild costs now topping $320,000, going without insurance could put your finances at serious risk.

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

The reality: Many auto policies do extend to rental vehicles, but typically only for personal use. Renting a car for work travel or other commercial purposes often requires separate coverage. Before saying no to the rental company’s insurance offering, double-check what your personal policy includes.

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

The reality: In many states, insurers use a credit-based insurance score to help assess risk levels. These scores often correlate with claim patterns. If your credit has improved, it may be worth a conversation with your agent—you could potentially qualify for better rates.

Tips to Prevent Gaps in Your Coverage

Staying ahead of your insurance needs can help you avoid stressful surprises. Consider these practical steps to keep your protection up to date:

• Review your policies once a year, especially after major life updates.
• Ask your agent to walk you through exclusions—knowing what’s not covered is just as important.
• Keep a home inventory or store photos and values of your belongings to simplify future claims.
• Understand the difference between “replacement cost” and “actual cash value,” as it affects how much you’d receive after a loss.
• Take a moment to reflect: Would you be financially comfortable filing a claim tomorrow?

When to Revisit Your Insurance Coverage

Your life evolves—and your insurance should evolve with it. It’s a good idea to review your policies when:

• You buy or sell a home or vehicle
• You take on a major renovation or upgrade
• Your household changes through marriage, divorce, or becoming a parent
• A new driver joins the family (teen drivers, we’re looking at you!)
• You launch a business or begin a side hustle
• Your income, credit score, or overall financial situation shifts

Whether you’ve believed one of these common myths or simply want to make sure your coverage is keeping up with your life, now is a great moment to reassess your policies. We’re here to help you understand your options, fill in any coverage gaps, and feel confident in your protection.

Reach out today to schedule a quick, no-pressure review of your policies. A little clarity now can make a big difference later.