Busted! 4 Common Insurance Myths That Could Cost You Big

In the complex world of insurance, myths and misconceptions can lead to costly mistakes—and leave you exposed when you need coverage the most.

Let’s break down four of the most common insurance myths and reveal the truth behind them so you can make better, more informed decisions.

❌ Myth 1: “I don’t need life insurance if I’m single or don’t have dependents.”

✅ The Truth:
Life insurance isn’t just for parents or married couples. Even if you’re single, life insurance can:

• Cover funeral and end-of-life expenses

• Pay off personal debts or student loans

• Leave a charitable legacy or help a family member
  It’s also generally more affordable the younger and healthier you are—locking in lower premiums for the future.

❌ Myth 2: “My homeowners insurance covers all types of water damage.”

✅ The Truth:
Standard homeowners policies typically cover sudden and accidental water damage (like a burst pipe), but do NOT cover:

• Flooding from natural disasters

• Sewer or drain backups
  According to the Insurance Information Institute, only 15% of U.S. homeowners have flood insurance. If you live in a flood-prone area, a separate flood policy is essential.

❌ Myth 3: “I don’t need rental car insurance—my auto policy covers it.”

✅ The Truth:
Your auto policy may cover rental cars—but with caveats:

• It might not cover all types of vehicles (e.g., trucks, luxury cars)

• Coverage may not extend outside of the U.S.

• Most policies exclude “loss of use” fees if the rental agency loses income while the car is being repaired

Before you decline that rental insurance, double-check your policy and ask questions.

❌ Myth 4: “Medicare covers all healthcare costs in retirement.”

✅ The Truth:
Original Medicare provides essential coverage—but not everything. It does not cover:

• Routine dental or vision care

• Hearing aids

• Long-term care or custodial care

Most retirees need Medigap (supplemental) policies or Medicare Advantage plans to fill these gaps and avoid out-of-pocket surprises.

🎯 Final Thought: Don’t Let Misconceptions Leave You Unprotected

Understanding the facts behind these common myths helps you avoid costly coverage gaps—and plan with confidence.

If you have questions about your insurance or want help reviewing your current policies, we’re here to help. Contact our office today for personalized guidance and peace of mind.