March 11th is Debunking Day, making it the perfect moment to shine a light on some of the most persistent misunderstandings about home and auto insurance. Many people base their coverage decisions on assumptions or outdated information, and unfortunately, that can lead to unexpected financial strain when something goes wrong.

To help you safeguard what matters most, let’s walk through eight widespread insurance myths—and what the facts really show.

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

The truth: The color of your vehicle has no influence on your insurance rates. Whether your car is red, black, blue, or bright orange, insurers simply don’t factor in appearance. What they do consider includes your vehicle’s make and model, age, safety features, engine size, your driving record, and how often or where you drive. Color never enters the equation.

Myth #2: “Flood insurance is only necessary in flood zones.”

The truth: Flooding can happen almost anywhere—even in areas not labeled high-risk. Roughly one-quarter of flood insurance claims come from outside designated flood zones. Even more surprising, standard homeowners policies do not cover flood damage at all. If storms or heavy rain are possibilities where you live, flood insurance is something worth discussing.

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

The truth: While older vehicles may decline in value, that doesn’t mean you can skip important protections. Most states still require liability coverage, regardless of your car’s age. And if you rely on your vehicle and would struggle to pay out-of-pocket for repairs or a replacement after an accident, maintaining collision and comprehensive coverage may still be the smart move.

Myth #4: “My homeowners policy covers everything in my house.”

The truth: Homeowners insurance does include personal property coverage, but only up to certain limits—typically a percentage of your home’s insured value. High-value items like fine jewelry, rare collectibles, musical instruments, or expensive electronics may exceed those limits. To fully protect these belongings, you may need additional scheduled coverage or a separate policy tailored to them.

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

The truth: Coverage for other drivers isn’t always guaranteed. While some policies extend protection to occasional drivers who have your permission, there are important exceptions—especially for business activity like deliveries, commercial driving, or rideshare work. If someone regularly drives your vehicle or uses it for their job, you may need to make sure your existing policy includes appropriate coverage.

Myth #6: “Having a good savings cushion means I can skip homeowners insurance.”

The truth: Even a robust emergency fund may not be enough to handle the financial fallout of a major loss. Homeowners insurance protects far more than just the physical structure. It typically includes liability coverage, help with temporary living expenses if your home becomes uninhabitable, and protection for personal belongings. Considering that the average cost to rebuild a home now exceeds $320,000, opting out leaves you exposed to significant risk.

Myth #7: “My car insurance always covers rental vehicles.”

The truth: Personal auto policies often cover rental cars, but only when you're using them for personal reasons. If the rental is tied to business travel or commercial use, your personal policy might not apply. Before turning down the rental company’s insurance, double-check how your own coverage works.

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

The truth: In many states, insurers use a credit-based insurance score to help determine your premiums. This isn’t the same as your regular credit score, but it’s influenced by similar financial behaviors. Since credit patterns can correlate with risk, an improved credit history may qualify you for better rates—so it never hurts to ask your agent to review your policy.

Quick Tips for Preventing Coverage Gaps

Staying proactive can help ensure you aren’t caught off guard during a claim. A few smart habits include:

• Review your policy each year—especially after major life events or big purchases.
• Ask your agent about exclusions so you understand exactly what isn’t covered.
• Create an inventory of your belongings or take updated photos to simplify claims later.
• Learn the difference between “replacement cost” and “actual cash value”—these terms can dramatically impact reimbursement after a loss.

And a good guiding question to keep in mind: “Would I be financially secure if I had to file a claim tomorrow?”

When You Should Reevaluate Your Insurance

Your life changes over time, and your insurance should evolve with it. It's a good idea to review your policy when:

• You buy or sell a home or car
• You complete a renovation or major home upgrade
• You experience a life change like marriage, divorce, or welcoming a child
• A new driver joins your household (especially teen drivers!)
• You start a business or launch a side gig
• Your financial situation—including credit score—shifts

Whether you’ve held on to one of these myths or simply feel uncertain about your current coverage, now is a great time to take another look. We’re here to help make sure your protection aligns with your needs—without pressure or confusion.

Reach out anytime to schedule a simple, stress-free policy review.