Many Maryland families and businesses rely on personal insurance or commercial insurance every day, yet misinformation continues to circulate about how coverage really works. March 11, also known as Debunking Day, is a perfect opportunity to clear up some of the most widespread assumptions surrounding home insurance, auto insurance, flood insurance, and other essential policies. Believing the wrong information can leave you exposed to financial loss, especially here in Maryland and the Mid-Atlantic where weather risks, driving patterns, and property values make the right insurance coverage more important than ever.

Below, we break down eight common insurance myths and explain what you should actually believe instead—using guidance you’d expect from a trusted independent insurance agency like Deale Insurance, a family-owned Maryland insurance agency providing trusted insurance guidance since 1986.

Myth #1: Red cars cost more to insure

A car’s color has no impact on your auto insurance rate. Whether your vehicle is red, black, or bright yellow, the paint job has no bearing on your car insurance premium. What does matter are factors like the vehicle’s make and model, age, engine type, safety features, and your driving record. Maryland drivers looking for the best car insurance options should focus on safe driving habits and a vehicle’s overall risk profile—not its color.

Myth #2: Flood insurance only matters in high-risk zones

Many homeowners in Anne Arundel County and throughout the Mid-Atlantic believe they only need flood insurance if they live in a designated flood zone. In reality, about one-quarter of all flood insurance claims come from outside these zones. Standard homeowners insurance policies almost never include flood coverage, leaving many residents unprotected. If you live anywhere it rains—or if you’re wondering whether you need flood insurance in Anne Arundel County—it’s worth exploring your options.

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

Even if your car has aged, you may still benefit from collision or comprehensive coverage. While Maryland law requires liability insurance for every driver, optional coverages can be valuable if you rely heavily on your vehicle or would struggle to pay out of pocket for repairs or replacement. Whether you drive an older sedan or a newer model, personalized coverage ensures you’re not caught off guard after a loss.

Myth #4: Homeowners insurance protects everything you own

Homeowners insurance offers strong protection, but it includes limits for personal belongings. High-value items like jewelry, fine art, electronics, or collectibles may exceed those standard caps. Anyone exploring how to choose the right homeowners insurance in Maryland should consider scheduled endorsements or separate coverage for their most valuable possessions to ensure full protection.

Myth #5: Any driver using your vehicle is automatically insured

Car insurance does not guarantee automatic coverage for anyone who gets behind the wheel. While occasional use may be allowed, regular drivers or individuals using the vehicle for work—such as deliveries or ridesharing—may not be covered under your policy. For Maryland families with teen drivers or households with multiple drivers, confirming who is listed on the policy is an essential step toward preventing coverage gaps.

Myth #6: Good savings eliminate the need for homeowners insurance

Even strong savings can’t fully protect you from the financial burden of a major loss. Homeowners insurance covers far more than the structure of your home. It includes liability insurance, protection for your belongings, and coverage for temporary living costs if your home becomes uninhabitable. With the average home rebuild cost exceeding $320,000, skipping home insurance isn’t worth the risk—especially in a region like Maryland where windstorm insurance and other specialized coverages may also be necessary.

Myth #7: Car insurance automatically extends to rental vehicles

Some personal auto insurance policies do include rental car coverage, but only under specific circumstances. If you’re renting a vehicle for personal use, your policy may extend protection. However, rentals used for business purposes typically require separate coverage. For Maryland residents seeking no-pressure insurance quotes, it’s smart to ask your agent before declining rental company insurance.

Myth #8: Credit scores don’t influence insurance rates

In many states, including Maryland, insurers may use a credit-based insurance score when determining premiums. These scores help predict risk levels and can influence pricing. If your credit has improved, reviewing your policy with a local insurance agency in Maryland can help ensure your premium reflects your current financial situation.

Smart steps to avoid coverage gaps

To maintain strong personal insurance or business insurance protection, consider these proactive strategies:

• Review each policy annually, especially after major life or property changes.
• Ask questions about exclusions so you understand what’s not covered.
• Document belongings or vehicle details to simplify future claims.
• Learn the difference between replacement cost and actual cash value, as this affects your payout after a loss.

Always consider whether your current coverage would support you if you had to file a claim tomorrow.

Key moments to review your insurance

Life moves quickly, and your personal insurance or commercial insurance should evolve along with it. It’s time to revisit your coverage when:

• You buy or sell a home, condo, rental property, or vehicle.
• You complete a renovation or major upgrade.
• You experience life changes such as marriage, divorce, or welcoming a child.
• A new driver joins your household.
• You launch a business or begin a side hustle and need business insurance or a Business Owners Policy (BOP).
• Your income, credit score, or financial situation shifts.

Whether you're reassessing homeowners insurance, exploring recreational vehicle insurance, or comparing commercial insurance options for your company, staying informed helps you avoid the most common insurance pitfalls.

As an Annapolis insurance agency licensed in MD, VA, DE, and FL, Deale Insurance is here to help you make informed decisions. Our local insurance experts provide guided insurance packages for families and businesses throughout Maryland and the Mid-Atlantic. Reach out today for personalized coverage or a no-pressure insurance quote tailored to your needs.