March 11th is Debunking Day, which makes it the perfect moment to take a closer look at some of the most persistent misunderstandings surrounding home and auto insurance. Many people make decisions based on assumptions or outdated information, and those misconceptions can quickly turn into costly surprises when something goes wrong.

To help clear things up, here are eight insurance myths you may have heard—and what’s actually true.

Myth #1: Red cars cost more to insure

The truth: Your vehicle’s paint color has zero impact on your insurance rate. Insurers don’t consider color at all when calculating your premium. What does matter are details like your car’s make and model, age, engine type, safety features, and how and where you typically drive. Your driving record also plays a major role. Color simply doesn’t factor into the equation.

Myth #2: Only people in flood zones need flood insurance

The truth: Flooding can—and often does—occur well beyond designated high-risk areas. Roughly one-quarter of flood insurance claims come from properties outside these zones. Since standard homeowners policies don’t include flood coverage, anyone who lives where rain falls should at least evaluate whether a flood policy makes sense for their situation.

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

The truth: Even if your car has depreciated, you’re still required to carry liability insurance in most states. And while dropping certain coverage types may save money upfront, it could leave you without protection if you rely on your vehicle daily. If an accident would put you in a tough financial spot, maintaining collision and comprehensive coverage might still be worth it.

Myth #4: My homeowners policy covers everything I own

The truth: Homeowners insurance does include personal property coverage, but the amount is typically limited to a percentage of your home’s insured value. High-value items—such as fine jewelry, rare collections, high-end electronics, or artwork—can easily exceed those limits. To fully protect special belongings, you may need to add scheduled coverage or obtain individual endorsements.

Myth #5: Anyone who drives my car is fully covered

The truth: Coverage for other drivers isn’t guaranteed in all situations. Many policies extend protection to people who use your vehicle occasionally and with permission, but exceptions exist. Regular use, rideshare driving, delivery work, or other business-related use can complicate coverage. If someone else frequently uses your car—or drives it for work—it’s important to confirm the details with your insurer.

Myth #6: I don’t need homeowners insurance if I have savings

The truth: Even a strong savings account may not be enough to handle the financial fallout of a large loss. Homeowners insurance covers far more than your physical house. It may include protection for your belongings, liability coverage if someone gets injured on your property, and help with living expenses if your home becomes uninhabitable. Considering that rebuilding costs now average well over $320,000, skipping coverage puts you at significant risk.

Myth #7: My car insurance automatically covers rental cars

The truth: Many personal auto policies do extend to rental cars, but usually only when they’re being used for personal reasons. Business travel or commercial use often falls outside your personal policy’s scope. Before turning down insurance at the rental counter, double-check the limits and exclusions of your existing coverage.

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

The truth: In many states, insurers use a credit-based insurance score when determining your premium. Data shows a correlation between credit behavior and insurance risk, which is why these scores are sometimes factored in. If your credit has improved recently, it’s worth discussing with your agent—you may qualify for a better rate.

Quick Tips for Avoiding Coverage Gaps

Staying on top of your coverage can keep small oversights from becoming major headaches. A few ways to stay protected include:

• Make time to review your policies each year, especially after big changes in your life.
• Ask your agent to explain exclusions so you understand what isn’t covered.
• Create a home inventory—photos, values, and descriptions can make claims easier.
• Learn the difference between replacement cost and actual cash value, since they affect your payout.

It can also help to ask yourself, "Would I be financially okay if I had to file a claim tomorrow?"

When You Should Revisit Your Insurance Coverage

Your life evolves, and your insurance should evolve with it. It’s a good idea to review your policy whenever:

• You purchase or sell a home or car
• You complete a renovation or major upgrade
• You experience a major life change, such as marriage, divorce, or expanding your family
• A new, inexperienced driver joins your household
• You begin a business venture or side gig
• Your income, credit score, or financial situation shifts

If you’ve ever believed one of these myths—or just want to ensure your coverage still makes sense—now’s a great time to give everything a closer look. We’re here to help you sort through your options, understand your protection, and avoid any surprises. Reach out whenever you're ready for a quick, pressure-free policy review.