Insurance can feel complicated, and common myths only make it feel more confusing. Whether you’re insuring your car, home, or belongings, understanding how your coverage works can help you make better decisions and avoid surprises if you need to file a claim.

Here are some of the most common insurance myths and the facts behind them.

Myth: Red cars cost more to insure.

One of the more persistent insurance myths is that red cars come with higher insurance premiums. This is false, explains Josh Brown, personal insurance advisor and manager with Bell Insurance.

“The cost to insure a car depends on the make and model, not the color,” Josh said. “It also depends on the driver behind the wheel – do they have a history of speeding tickets or accidents, for example?”

In other words, a red car will not automatically cost more to insure. However, if the driver of a red car has a history of speeding, they may see higher premiums, Josh added.

Myth: You should always file an insurance claim when your home or car is damaged.

Filing an insurance claim is not always the best option, especially if you’re only dealing with minor damage.

First, you will need to pay your policy’s deductible when you file a claim. Depending on the deductible and the cost of the repair, it may make more sense to pay for the repair out of pocket. For example, if your deductible is $1,000, and the repair costs $1,200, you would only receive $200 from your insurer, which may not be worth filing a claim.

Additionally, frequently filing small claims can have a negative impact on your insurance premiums over time.

“Claims stay with you for 3-5 years and can have an effect on your premium during that time,” Josh said. “So, paying out of pocket may be a better deal for you than filing a claim, paying the deductible, and then dealing with a higher premium for several years.”

Myth: You don’t need life insurance if you’re young, healthy and single.

Even if you’re healthy, getting life insurance when you’re younger can be advantageous over the long run.

“At that point in your life, the cost is going to be relatively inexpensive, and you’re protecting your insurability over the long term,” Josh said.

If your health changes later due to a medical issue, most policies let you extend your coverage without having to go through the underwriting process again.

“Getting life insurance when you’re young helps ensure you have that protection,” Josh said.

Myth: If a neighbor’s tree falls on your house or fence, their insurance will cover it.

In this scenario, your homeowners insurance would most likely pay for the damage, Josh explains.

“For your neighbor’s insurance to come into play, your neighbor would have had to be negligent in taking care of that tree, and most of the time that is not the case,” he said.

Instead, it is usually severe weather that causes a tree to fall, and that would likely be considered an unavoidable event.

“It would be hard to say that your neighbor was at fault when the tree ultimately blew down because of severe weather,” Josh said.

Get Help Understanding Your Coverage

If you have questions about your insurance policy, it’s important to work with a knowledgeable, experienced insurance agent. At Bell Insurance, our team can help you sort fact from fiction and understand what your policy covers and what it doesn’t. Reach out to get a quote or speak to an agent today.