With Debunking Day coming up on March 11th, there’s no better moment to clear the fog around some of the most persistent misconceptions in home and auto insurance. Plenty of people base their coverage decisions on outdated or inaccurate information, and unfortunately, that can lead to financial trouble when a claim arises.

To help you stay protected, we’re breaking down eight widespread insurance myths—and revealing what’s actually true.

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

The truth: Contrary to popular belief, the color of your vehicle isn’t something insurers consider when determining your premium. Whether the car is red, silver, black, or blue has no bearing on your rate. What matters instead are factors like the vehicle’s age, make and model, engine type, safety ratings, where and how often you drive, and your personal driving record.

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

The truth: Flooding can happen anywhere—it isn’t limited to high-risk areas. Roughly one-quarter of flood-related claims actually come from homeowners living outside designated flood zones. Even more important, most standard homeowners insurance policies do not include flood protection. If you live in an area where rainfall is common, flood insurance may be more essential than you think.

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

The truth: Older vehicles do depreciate, but that doesn’t automatically mean you should drop certain coverages. Liability insurance is typically required by law regardless of how old your car is. If you rely heavily on your vehicle and can’t afford unexpected repair or replacement costs after an accident, maintaining collision and comprehensive coverage may still be worthwhile.

Myth #4: “Homeowners insurance covers all my belongings.”

The truth: While homeowners policies do include personal property coverage, the protection often comes with limits tied to your home’s insured value. High-value items—like jewelry, rare collectibles, or premium electronics—may exceed those limits. To ensure full protection, you may need to “schedule” these items through separate endorsements or individual policies.

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

The truth: Coverage for other drivers isn’t always guaranteed. While your policy may extend to occasional drivers who have your permission to use the vehicle, this extension has boundaries. Business use, rideshare driving, and frequent non-owner use can create gaps in coverage. If someone else regularly drives your car or uses it for work, make sure your policy explicitly covers those situations.

Myth #6: “A strong savings account means I don’t need homeowners insurance.”

The truth: Even a healthy emergency fund may not be enough to shoulder the financial burden of a major loss. Homeowners insurance does more than protect the structure itself. It can also include personal property coverage, liability protection if someone gets hurt on your property, and loss-of-use coverage if you need temporary housing after damage. Considering that rebuilding a home today often exceeds $320,000, opting out of insurance can be a costly gamble.

Myth #7: “My car insurance automatically applies to rental cars.”

The truth: Many auto policies do offer coverage for rental vehicles, but this usually applies only when you’re renting for personal reasons. If you’re renting a car during work travel—or for any commercial purpose—your personal insurance may not extend to that situation. Always confirm before declining the rental company’s insurance option.

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

The truth: In many states, insurers use something called a credit-based insurance score to help determine premiums. This isn’t the same as your regular credit score, but it’s influenced by similar financial behaviors. Research shows that credit patterns can connect to risk. If your credit has recently improved, it’s worth checking whether you qualify for a better rate.

Smart Ways to Avoid Losing Coverage

Staying proactive about your insurance can help you prevent unwanted surprises. Here are a few quick habits to keep you on track:

• Review your policies once a year, especially after major life changes.
• Check with your agent about exclusions so you understand what’s not protected.
• Create an inventory of your home and belongings—or keep photos and estimated values—to make future claims easier.
• Learn the difference between “replacement cost” and “actual cash value,” as it may impact your payout after a loss.

Take a moment and ask yourself: Would I be financially prepared if I needed to file a claim tomorrow?

When You Should Revisit Your Insurance Coverage

Life changes quickly, and your insurance should keep pace. It’s a good idea to reassess your policy when:

• You buy or sell a home or vehicle
• You complete a renovation or major improvement
• You get married, divorced, or welcome a child
• A teenager earns their driver’s license
• You launch a business or start a side gig
• Your financial situation, credit score, or income shifts

Whether you’ve believed one of these myths or simply want to confirm your coverage still fits your needs, now is an ideal time to take a closer look. We’re here to help you stay informed and avoid gaps in protection. Reach out anytime to schedule a quick, pressure-free policy review.