Please note: This site provides general educational information only. Insurance is regulated by state and rates vary widely. Consult a licensed professional or insurer for advice specific to your situation. Data is based on publicly available averages and may not reflect current individual rates.

Myth vs. Data Cards

Myth vs. data cards

Common insurance beliefs, paired with the general data or concept that puts them in context. Each card is shareable — copy the text to post or send it along.

Browse the cards

Myth

Red cars cost more to insure.

Data / Concept

Paint color isn't a rating factor insurers track. Pricing is based on things like make, model, safety record, and repair cost.

Myth

A ticket from another state won't follow you home.

Data / Concept

Most states share driving record data through interstate reporting systems, so an out-of-state ticket typically still affects your record.

Myth

State-minimum coverage is enough protection for everyone.

Data / Concept

Minimums are a legal floor, not a personalized recommendation. They can be far below the real cost of a serious accident.

Myth

“Full coverage” means unlimited protection.

Data / Concept

It's an informal bundle of liability, collision, and comprehensive. Each part still has its own limit, deductible, and exclusions.

Myth

Comprehensive coverage pays if you hit another car.

Data / Concept

That's what collision coverage is for. Comprehensive covers non-collision events, like theft or weather damage.

Myth

My roommate's renters policy covers me too.

Data / Concept

A policy generally only covers the people named on it. An unlisted roommate typically needs their own policy.

Myth

My landlord's insurance covers my belongings.

Data / Concept

A landlord's policy typically covers the building structure, not a tenant's personal property or personal liability.

Myth

Renters insurance is expensive.

Data / Concept

It's typically one of the least expensive policy types, often averaging under $20 a month for standard coverage.

Myth

Any water damage is covered.

Data / Concept

Sudden, accidental damage like a burst pipe is typically covered. Gradual damage from neglect, and flooding, usually are not without separate coverage.

Myth

I don't own enough stuff to need renters insurance.

Data / Concept

Liability coverage, which matters regardless of how much you own, is part of most standard renters policies too.

Myth

Life insurance is only worth buying once you're older.

Data / Concept

Premiums are generally lowest when purchased younger and in good health, since age is typically the biggest single rating factor.

Myth

A workplace life insurance policy is automatically enough.

Data / Concept

Whether any amount of coverage is enough depends entirely on individual circumstances. This is a general concept, not a recommendation.

Myth

Every life insurance policy requires a medical exam.

Data / Concept

Some policies use simplified or no-exam underwriting. Requirements vary by insurer, policy size, and health class.

Myth

Term life insurance builds savings over time.

Data / Concept

Term life has no cash value. It's whole and universal life, the permanent policy types, that build cash value.

Myth

Insurance rates are the same everywhere in the country.

Data / Concept

Insurance is regulated at the state level, so rules and typical costs can vary significantly from state to state.

Myth

A higher deductible is always a bad choice.

Data / Concept

Higher deductibles typically lower the premium. Whether that tradeoff makes sense depends on individual circumstances.

Myth

Filing any claim will get your policy canceled.

Data / Concept

Insurers commonly review claims history when pricing a renewal, but a single claim doesn't automatically end a policy. Practices vary by company and state.

Myth

Comparing policies is only about finding the lowest price.

Data / Concept

Coverage limits, deductibles, exclusions, and an insurer's financial strength rating are all part of a fuller comparison, not price alone.

Sharing note: these cards are meant to be copied, posted, or sent as-is for general education. They reflect broad public patterns, not a specific person's situation, insurer, or state.