5 Insurance Myths You Should Stop Believing
From ‘red cars cost more’ to ‘home insurance covers everything’—we’re breaking down the biggest misconceptions.
When it comes to insurance, misinformation can cost you—literally. Whether it's car, home, or life insurance, there are plenty of myths floating around that could lead you to make costly mistakes. Let’s debunk five of the most common insurance myths so you can make informed decisions and protect what matters most.
1. Red Cars Cost More to Insure 🚗❌
This is one of the most persistent myths out there. The color of your car has no impact on your insurance rates. Insurers base premiums on factors like the car’s make, model, age, engine size, and safety features—not the paint job. So go ahead and choose your favorite color without worrying about a price hike!
2. Home Insurance Covers Everything 🏡🔍
Many homeowners assume their insurance policy covers any and all damages, but that’s not the case. Standard home insurance typically covers fire, theft, and certain weather events, but floods and earthquakes usually require separate policies. Always review your coverage and consider additional protection if needed.
3. If You Have Life Insurance Through Work, You Don’t Need More 💼⚖️
Employer-provided life insurance is a great perk, but it may not be enough. These policies often offer limited coverage—usually one to two times your salary—which may not fully support your loved ones if something happens to you. Having a personal policy ensures your family has adequate financial protection.
4. Minimum Auto Insurance is Enough 🚘🛑
While state-minimum coverage meets legal requirements, it may not be sufficient in a major accident. If damages exceed your policy limits, you’ll have to pay the difference out of pocket. Investing in higher car insurance coverage can protect you from financial hardship.
5. Flood Insurance is Only for High-Risk Areas 🌊🏠
Flooding can happen anywhere, not just in high-risk zones. In fact, about 25% of all flood insurance claims come from low- to moderate-risk areas. Since standard home insurance doesn’t cover flood damage, it’s worth considering a separate policy to stay protected.
Final Thoughts 💭
Don’t let these common insurance myths steer you in the wrong direction. Understanding what your policy does—and doesn’t—cover can save you money and stress in the long run. If you’re unsure about your coverage, call us to ensure you’re fully protected.
Have more insurance questions? We’re here to help! Contact us today or check out more expert tips on our blog.
