March 11th is Debunking Day, making it a perfect opportunity to clear up some long-standing misunderstandings about home and auto insurance. Many people still make decisions based on outdated assumptions, which can leave them vulnerable when real issues arise. To help you stay protected, let’s revisit some of the most persistent myths and uncover the truth behind them.

Myth #1: Red cars cost more to insure

It’s a widely repeated belief, but the color of your vehicle has zero impact on your auto insurance rate. Insurers focus on factors such as the age of your car, its model and engine type, what safety features it includes, how often you drive, and your driving record. Whether your vehicle is red, blue, or neon green makes no difference at all.

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

Flooding is more common than many homeowners realize, and it’s not confined to high‑risk areas. Roughly a quarter of flood-related insurance claims originate outside designated flood zones. Adding to that, most standard homeowners insurance policies don’t cover flood damage. If your area gets rainfall, even occasionally, it’s worth evaluating whether flood insurance makes sense for you.

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

While older vehicles generally lose value over time, that doesn’t automatically mean you should skip comprehensive or collision coverage. Many states still require drivers to carry liability insurance regardless of the vehicle’s age. And if you rely heavily on your car or couldn’t afford major repairs or replacement after an accident, maintaining broader protection may still be a wise choice.

Myth #4: Homeowners insurance covers all personal belongings

Your homeowners policy does include personal property coverage, but it typically only covers up to a percentage of your home’s insured value. High-cost items—such as fine jewelry, rare collectibles, or premium electronics—may exceed those limits. To fully protect them, you may need additional coverage or individual item scheduling.

Myth #5: Everyone who drives your car is automatically covered

Your policy might extend to someone who occasionally borrows your vehicle with your permission, but the coverage isn’t unlimited. If someone regularly drives your car or uses it for work-related activities like deliveries or ridesharing, you may need to make sure they’re properly listed or covered. Confirming the details ahead of time can prevent surprises later on.

Myth #6: A strong savings account can replace homeowners insurance

Even a healthy financial cushion can fall short in the face of major property damage or liability issues. Homeowners insurance doesn’t just cover your residence—it also includes protection for personal items, loss of use if your home becomes temporarily uninhabitable, and liability coverage if someone is injured on your property. Given that rebuilding a home now averages more than $320,000, opting out of insurance can be an extremely costly gamble.

Myth #7: Your auto insurance automatically covers rental cars

Many auto policies do extend to rental vehicles used for personal travel, but that doesn’t always include business use. If you’re renting a car for work or commercial purposes, your personal policy may not apply. It’s always best to verify your coverage before declining the rental company’s insurance options.

Myth #8: Your credit score doesn’t affect insurance rates

In many states, insurers rely on a credit-based insurance score when calculating premiums. The reasoning is that certain credit patterns statistically correlate with risk. So if your credit has improved recently, it may be worth checking in with your agent—you might qualify for a lower rate.

Smart habits to avoid coverage gaps

Staying ahead of potential coverage issues can help protect you from unexpected financial stress. Here are a few simple steps to keep your insurance in shape:

• Review your policy each year, especially after major life changes.
• Ask your agent to explain exclusions so you know exactly what isn’t covered.
• Create an inventory of your home or vehicle details to streamline any future claims.
• Learn the difference between replacement cost and actual cash value—they greatly affect claim payouts.

It’s also helpful to consider: Would you be financially prepared if you had to file a claim tomorrow?

Key moments to reassess your insurance

As life evolves, your coverage should evolve with it. Plan to revisit your policies when:

• You buy or sell a home or vehicle
• You complete renovations or major upgrades
• You experience a significant life event such as marriage, divorce, or having a child
• A teenager or new driver joins your household
• You launch a new business or side venture
• Your financial situation, credit score, or income changes

If you’ve ever questioned one of these myths or just want confidence that your protection still fits your needs, now is an ideal time for a closer review. We’re here to help you understand your options and avoid unexpected gaps. Reach out anytime to schedule a quick, pressure‑free policy review.