Insurance Myths vs. Facts: What You Should Really Know Before You Buy

Insurance can be confusing — and when confusion happens, myths and misconceptions start to spread.

“I don’t need insurance because I’m healthy.”

“All policies cover everything.”

“My premium is all I’ll ever pay.”

You’ve probably heard statements like these — or even thought them yourself.

But believing these myths can leave you vulnerable when life happens.

In this post, let’s bust some of the most common insurance myths so you can shop smarter, protect better, and avoid unpleasant surprises.

Myth #1: Insurance is only for the sick, the elderly, or unlucky people.

Fact:

Insurance is for everyone — because no one knows what tomorrow holds.

Whether it’s a car accident, house fire, unexpected illness, or lawsuit, insurance protects you against risks that can happen to anyone at any age.

Takeaway:

You don’t buy insurance because you expect the worst.

You buy it because you want to be prepared just in case.

Myth #2: The cheapest policy is always the best.

Fact:

While saving money is important, low-cost policies often come with limited coverage, high deductibles, and strict exclusions.

What looks affordable now could cost you far more when you file a claim.

Takeaway:

It’s not just about the price — it’s about the value and coverage you get.

Myth #3: My insurance will cover everything.

Fact:

Every insurance policy has exclusions and limits.

Flood damage may not be included in a standard homeowners policy. Pre-existing conditions might not be covered in certain health plans.

Takeaway:

Always read the fine print and understand what your policy covers and what it does not.

Myth #4: If I’m young and healthy, I don’t need life or health insurance.

Fact:

Accidents and illnesses can happen to anyone, regardless of age or health.

Plus, buying insurance when you’re younger and healthier often means lower premiums.

Takeaway:

Don’t wait until it’s too late or too expensive. Planning ahead locks in better rates and ensures you’re protected early.

Myth #5: I only need the minimum auto insurance required by law.

Fact:

Minimum coverage usually only covers liability (what you owe to others).

It won’t pay for your car’s repairs, injuries to you, or damages from theft, fire, or natural disasters.

Takeaway:

State minimums leave you exposed. Consider higher limits and comprehensive coverage for better protection.

Myth #6: I don’t need renters insurance because my landlord’s insurance will cover me.

Fact:

Your landlord’s policy covers the building — not your personal belongings or liability if someone is injured in your unit.

Takeaway:

Renters insurance is affordable and protects your personal property and your liability.

Myth #7: I can’t get insurance because of my health history.

Fact:

While some pre-existing conditions can affect coverage, many insurance options exist, including guaranteed issue and high-risk pool policies.

Takeaway:

Never assume you are uninsurable. Work with a knowledgeable agent who can help find coverage options.

Conclusion: Protect Yourself with the Truth

Don’t let myths and half-truths leave you exposed.

Insurance is about knowledge and preparation.

By busting these myths, you empower yourself to make smarter decisions and secure coverage that truly protects what matters most.

Need help navigating the insurance maze? Contact us or stay tuned for our next post: “Choosing the Right Coverage: How to Assess What You Really Need.”