Top 7 Insurance Myths - And the Truth Behind Them

When it comes to insurance, there’s no shortage of myths and misunderstandings. As your trusted local insurance agency, we believe that a well-informed customer is a protected customer. So, let’s clear the air on some of the most common myths we hear - and make sure you have the facts you need to feel confident about your coverage.

1️⃣ Myth: “I Have Homeowners Insurance - So Everything I Own Is Covered.”
Truth:
Your homeowners policy covers many things, but it has limits - especially for high-value items like jewelry, collectibles, fine art, or expensive electronics. Most standard policies have specific dollar limits for categories like jewelry or firearms. If you have valuables that exceed those limits, you may need to schedule (or “endorse”) them separately.
👉 Tip: Take inventory of your valuables and talk to your agent about adding extra coverage if needed.

2️⃣ Myth: “Red Cars Cost More to Insure.”
Truth:
Your car’s color has no impact on your insurance rate - none at all! What does matter? The make, model, age, engine size, your driving record, how you use the car, and even your location. So, feel free to buy that bright red convertible - but drive safely!

3️⃣ Myth: “Renters Don’t Need Insurance - My Landlord’s Policy Covers Me.”
Truth:
Your landlord’s policy covers the building, but not your belongings. If there’s a fire or a break-in, your landlord’s insurance won’t pay to replace your clothes, furniture, or electronics. Renters insurance is an affordable way to protect your stuff - and it often includes liability coverage, too.

4️⃣ Myth: “I Don’t Need Life Insurance Because I’m Young and Healthy.”
Truth:
Life insurance is usually cheapest when you’re young and healthy - and locking in a policy now can help you secure lower rates for the future. Even if you don’t have dependents today, life insurance can cover debts, student loans, or funeral costs so your loved ones aren’t left with unexpected expenses.

5️⃣ Myth: “Flood Damage Is Covered by Homeowners Insurance.”
Truth:
One of the most expensive misunderstandings: Most homeowners policies do NOT cover flood damage. If you live in a flood-prone area - or even if you think you don’t - you should consider separate flood insurance. Just one inch of water can cause tens of thousands of dollars in damage.

6️⃣ Myth: “If My Friend Borrows My Car, Their Insurance Will Pay If There’s an Accident.”
Truth:
In most cases, car insurance follows the car - not the driver. So, if your friend borrows your car and gets into an accident, it’s likely your policy will pay first, not theirs. Be sure you trust anyone who drives your vehicle and add them to your policy if they drive your vehicles frequently.

7️⃣ Myth: “Insurance Is Too Expensive - I’ll Just Risk It.”
Truth:
The cost of not having insurance can be far greater than the premium you pay. One accident, lawsuit, or natural disaster could wipe out your savings - or worse. And many people don’t realize there are ways to save, like bundling policies, installing security systems, or adjusting your deductibles.

✅ The Bottom Line
Insurance isn’t about paying for “what ifs” - it’s about protecting what matters most. Understanding how your coverage works gives you peace of mind and helps you avoid costly surprises when you need it most.
Have questions? Wondering if you have enough coverage - or too much? We’re here to help you sort facts from fiction, and tailor your policy to fit your life. Give us a call today - let’s talk about how to keep you properly protected.

Angle Agency Insurance
Your local trusted insurance experts
​