March 11th is Debunking Day, making it the perfect opportunity to clear up some long-standing confusion about home and auto insurance. Many people make decisions based on outdated information or assumptions, which can end up costing them when they need coverage the most. By shining a light on the facts, you can make smarter, more confident insurance choices.

Below, we’re breaking down eight stubborn insurance myths and replacing them with what you should actually believe.

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

The truth: Your car’s color has no impact—none at all—on your insurance premium. Insurers look at things like the vehicle’s age, model, engine type, safety features, how much you drive, and your driving history. Whether the car is red, blue, or neon green makes no difference.

Myth #2: “Only people in flood zones need flood insurance.”

The truth: Flooding can happen just about anywhere. Nearly a quarter of all flood insurance claims come from outside designated high-risk zones. Even more important, standard homeowners insurance usually does not include flood coverage. If your area gets rain—which is almost everywhere—flood insurance is at least worth a thoughtful review.

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

The truth: While older cars typically decline in value, that doesn’t automatically mean you should drop coverage. Liability insurance is still legally required in most states. And if you depend on your vehicle and wouldn’t be able to pay out of pocket for repairs or a replacement after an accident, collision and comprehensive coverage may still be important.

Myth #4: “My homeowners policy protects everything I own.”

The truth: Homeowners insurance does include protection for your personal belongings, but there are limits. High-value items such as jewelry, collectibles, or premium electronics often exceed the standard coverage caps. To fully safeguard these possessions, you may need to individually schedule them or add specialized endorsements.

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

The truth: Coverage doesn’t always extend as far as people assume. While your policy may protect occasional drivers with your permission, there are exceptions—especially for business use, delivery services, or rideshare driving. If someone else uses your vehicle frequently or professionally, you’ll want to confirm that your policy explicitly covers them.

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

The truth: Even a significant savings cushion might not be enough to handle a major loss. Homeowners insurance does more than cover physical damage to your home; it also includes liability protection, loss-of-use coverage if your home becomes uninhabitable, and personal property protection. With the average rebuilding cost now exceeding $320,000, skipping insurance can create tremendous financial risk.

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

The truth: Many auto policies provide rental car coverage, but usually only for personal use. If you’re renting a car for a business trip or any commercial purpose, your personal insurance often won’t apply. Always double-check before declining the rental company’s insurance at the counter.

Myth #8: “My credit score doesn’t influence my premium.”

The truth: In many states, insurers use a credit-based insurance score to help determine rates. This is because certain credit patterns are statistically associated with risk levels. If your credit has improved recently, it may be worth mentioning to your agent—you could qualify for a better rate.

Smart Steps to Avoid Costly Coverage Gaps

Staying on top of your insurance needs can help you avoid surprises when it’s time to file a claim. Here are a few proactive habits to adopt:

• Review your policy each year, especially after big milestones or changes.
• Ask your agent to clarify exclusions—knowing what isn’t covered is just as important as knowing what is.
• Document your belongings with an updated inventory, including photos and estimated values.
• Learn the difference between “replacement cost” and “actual cash value,” as each affects how much you’ll receive after a loss.
• Consider the question: “Would I be financially prepared if I needed to file a claim tomorrow?”

When to Revisit Your Insurance Coverage

Life changes quickly, and your insurance should evolve with it. It’s a good idea to reassess your policies anytime:

• You buy or sell a home or vehicle
• You complete a major renovation or upgrade
• You get married, divorced, or welcome a child
• A teen or other new driver joins your household
• You launch a business or pick up a side hustle
• Your income, credit score, or financial situation shifts

Whether you’ve believed one of these myths or simply want to make sure your insurance still fits your life, now is a great time to take a closer look. We’re here to help you make confident, informed decisions and avoid unexpected gaps in protection.

Reach out anytime to schedule a friendly, no-pressure policy review.