Many homeowners and drivers base their insurance decisions on long-standing misconceptions that simply aren’t true. Debunking Day on March 11 is the perfect opportunity to clear up the confusion and understand what really affects your coverage. Clearing up these misunderstandings can help you avoid costly gaps and make more confident choices about protecting what matters most.

Below is a fresh look at eight widespread insurance myths and the real facts behind them.

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

The truth is that the color of your car has no influence on your auto insurance rate. Insurers don’t factor in whether your vehicle is red, blue, white, or anything else. What actually shapes your premium are details such as your vehicle’s age, model, safety features, engine size, mileage, and your driving record. Color simply isn’t part of the equation.

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

Many people assume they’re safe from flooding because they don’t live in a high‑risk area, but that’s far from reality. Roughly a quarter of all flood-related insurance claims occur outside identified flood zones. Most standard homeowners policies also exclude flood damage entirely. If there’s any chance of heavy rain or rising water where you live, flood insurance is a wise option to explore.

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

It’s true that older cars lose value over time, but that doesn’t automatically mean you should reduce your coverage. Most states still require you to carry liability insurance regardless of your vehicle’s age. If your car is essential to your daily routine and you couldn’t afford sudden repair or replacement costs, keeping collision and comprehensive protection may still be important.

Myth #4: “Homeowners insurance covers every item I own.”

While homeowners policies do include personal property coverage, it typically comes with limits based on a percentage of your overall dwelling coverage. High-value items—such as jewelry, collectibles, luxury electronics, or rare memorabilia—can exceed those built‑in limits. To fully safeguard those belongings, you may need scheduled coverage or specialty endorsements that provide more complete protection.

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

Coverage for other drivers isn’t universal. Your policy may extend to someone who occasionally borrows your car with your permission, but there are exceptions. Activities like delivery driving, commercial use, or ridesharing often require separate types of coverage. If someone routinely drives your car or uses it for work, it’s important to verify that your policy fully protects them.

Myth #6: “With enough savings, I don’t need homeowners insurance.”

Even a strong financial cushion may fall short in the face of a major loss. Homeowners insurance covers far more than your home’s structure. It also includes liability protection if someone gets hurt on your property, coverage for personal belongings, and additional living expenses if you’re unable to stay in your home after a covered incident. Considering that the average cost to rebuild a home now exceeds $320,000, forgoing insurance leaves you exposed to significant risk.

Myth #7: “My auto insurance always applies to rental cars.”

Many personal auto policies do offer coverage for rental cars, but usually only for personal use. If you rent a car for a business trip or commercial activities, your own policy may not extend to that situation. It’s always best to verify your coverage before deciding whether the rental agency’s insurance is necessary.

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

In many states, insurers use a credit‑based insurance score when pricing premiums. These scores have been shown to correlate with risk levels, which is why they play a role in rate calculations. If your credit has recently improved, letting your agent know could help you secure a better rate.

Smart Ways to Prevent Coverage Gaps

Being proactive about your insurance can make a major difference when the unexpected happens. A few small steps can help ensure your coverage stays accurate and effective:

• Review your policy each year, especially after major life changes.
• Ask your agent to clarify exclusions so you know what isn’t protected.
• Keep an updated home or vehicle inventory—photos, values, and details can simplify future claims.
• Learn the difference between replacement cost and actual cash value, as this affects how much you receive after a loss.

A helpful question to ask yourself: Would I be financially prepared if I had to file a claim tomorrow?

When It’s Time to Revisit Your Coverage

Your insurance needs can shift quickly as life evolves. It’s a good idea to reevaluate your policies when any of the following occur:

• You purchase or sell a home or vehicle
• You complete a major renovation or upgrade
• You get married, divorced, or welcome a child
• A new driver enters your household
• You launch a side business or full-time venture
• Your finances, credit score, or income change significantly

Whether you’ve believed one of these myths or simply want to make sure your protection is still aligned with your needs, Debunking Day offers a great reminder to revisit your coverage. Taking the time now can help you avoid unpleasant surprises later.

If you’re ready for a clear, straightforward review of your policies, reach out to your insurance professional for guidance and support.