Don't let common misconceptions leave you underprotected or overpaying. We debunk the most persistent insurance myths and reveal the truth about coverage, claims, and costs in Florida.
Insurance myths are everywhere—from well-meaning advice from friends to outdated information that persists on social media. These misconceptions can cost Orlando families thousands of dollars in overpaid premiums or leave them dangerously underprotected. Let's set the record straight.
Myth #1: "Red Cars Cost More to Insure"
❌ The Myth
Insurance companies charge higher premiums for red cars because they're more likely to be pulled over or involved in accidents.
✅ The Truth
Car color has absolutely no impact on insurance rates. Insurers consider make, model, year, safety features, and theft rates—but never color. A red Honda Civic costs the same to insure as a blue one.
Myth #2: "Older Drivers Always Pay Less"
❌ The Myth
Once you reach a certain age, your insurance automatically becomes cheaper and stays that way.
✅ The Truth
While drivers in their 50s and early 60s often enjoy the lowest rates, premiums can increase again after age 70 due to slower reaction times and increased accident risk. Rates vary by individual driving record and location.
Myth #3: "Minimum Coverage is Enough"
❌ The Myth
Florida's minimum insurance requirements provide adequate protection for most situations.
✅ The Truth
Florida's minimums ($10,000 PIP, $10,000 property damage, NO bodily injury requirement) are among the lowest in the nation. One serious accident can result in hundreds of thousands in damages.
Myth #4: "Credit Score Doesn't Affect Insurance"
❌ The Myth
Your credit score has nothing to do with your insurance premiums.
✅ The Truth
In Florida, insurers can use credit-based insurance scores to help determine rates. Studies show correlation between credit management and claim frequency, though the practice is controversial.
Myth #5: "Home Insurance Covers Everything"
❌ The Myth
Homeowners insurance covers all possible damage to your home and belongings.
✅ The Truth
Standard homeowners policies exclude flood damage, earthquakes, and often have limited coverage for high-value items like jewelry. In Florida, you typically need separate flood insurance.
Myth #6: "It's Cheaper to Pay Claims Yourself"
❌ The Myth
Small claims should always be paid out-of-pocket to avoid rate increases.
✅ The Truth
While frequent small claims can affect rates, you're paying for coverage—use it when appropriate. Many insurers offer accident forgiveness, and some claims don't affect rates at all (like comprehensive claims for vandalism or weather damage).
Myth #7: "Brand Name Matters Most"
❌ The Myth
Big-name insurance companies always offer better service and coverage than smaller insurers.
✅ The Truth
Company size doesn't guarantee quality. Some smaller, regional insurers offer excellent service and competitive rates. What matters is financial stability, customer service ratings, and coverage options.
"The most expensive insurance mistake is believing outdated information. Insurance markets change constantly—what was true five years ago might cost you money today."
Take Action: Myth-Busting Checklist
- ✓ Review your current coverage limits—are they adequate?
- ✓ Check your credit report and work on improving your score
- ✓ Ask about available discounts you might be missing
- ✓ Consider flood insurance if you don't have it
- ✓ Get quotes from multiple insurers, including regional companies
- ✓ Read your policy—don't assume what's covered
- ✓ Schedule an annual insurance review
Separate Fact from Fiction
Don't let insurance myths cost you money or leave you underprotected. Our experts can review your coverage and help you make informed decisions based on facts, not fiction.