Myths and misconceptions about what affects your premiums or what your policy covers can lead to confusion and misguided decisions. It's time to clear the air and debunk some of the most common insurance myths related to Home, Auto, Renters, and Umbrella Insurance.

Navigating the world of insurance can feel like trying to find your way through a dense fog. Myths and misconceptions about what affects your premiums or what your policy covers can lead to confusion and misguided decisions. It’s time to clear the air and debunk some of the most common insurance myths related to Home, Auto, Renters, and Umbrella Insurance. Here is a list of our top 10 insurance myths.

1. Red Cars Cost More to Insure:

The color of your car, whether red or any other color, does NOT influence your insurance rates. When deciding on your premiums, we consider factors like the car’s model, your driving history, and usage.

2. Homeowners Policies Cover Flood Damage:

A widespread myth is that standard homeowners policies cover flood damage. In truth, flooding or other natural disasters must be covered under a separate policy. If you are in an area prone to flooding, make sure you have enough coverage for this particular peril.

3. Comprehensive Auto Coverage Covers Everything:

While our comprehensive coverage is extensive, it’s designed to cover non-collision events such as theft or environmental damage, not accidents, which are covered separately under collision coverage.

4. Renters Insurance Is Your Landlord’s Responsibility:

A landlord’s insurance policy covers the property itself and does NOT extend to their tenants’ personal belongings or liability. To protect those things, you must take out a renters insurance policy of your own. In fact, some rental properties require their tenants to take out a renters policy in order to sign a lease at all.

5. Renters Insurance Only Covers Personal Belongings:

Renters insurance goes beyond just covering your personal property. It includes liability protection and can cover additional living expenses if your rental becomes uninhabitable due to a covered loss, such as a fire, severe storm, or flooding from burst pipes.

6. Umbrella Insurance Is Redundant If You Have Auto and Home Insurance:

Some policyholders believe that if they already have auto and home insurance, adding an umbrella policy is unnecessary. However, umbrella insurance provides an extra layer of liability protection that goes beyond the limits of standard auto and home insurance policies. It’s designed to kick in when the coverage limits of your other policies have been reached, offering additional protection against large liability claims or lawsuits that could otherwise significantly impact your financial security.

7. You Don’t Need Auto Insurance for a Car You Don’t Drive:

Even if a car is not in use, as of July 1, 2024, Virginia law will require vehicles to be insured if they are registered. Additionally, if your car is not insured, you won’t have the necessary protection against non-driving-related incidents such as theft or weather damage.

8. Parking Tickets Affect Your Auto Insurance Rates:

Parking tickets do not directly impact your insurance premiums. However, consistently failing to pay them can affect your credit score, and this could affect your premium. Furthermore, unpaid parking tickets can also affect your ability to register your vehicle, as local municipalities may place a hold on the vehicle registration renewal process for outstanding tickets or fines. If this happens, you won’t be able to renew your vehicle’s registration until those tickets are paid. 

9. Home Insurance Fully Covers High-Value Items:

While homeowners insurance does cover personal property, there are exceptions for high-value items like fine art or jewelry. You may need to take out a separate policy or schedule these items to ensure they’re adequately protected.

10. Only At-Fault Accidents Affect Your Auto Insurance Premium:

This isn’t necessarily true. Your auto insurance rates can be influenced by any claim you file, though the impact of that claim may vary. Even not-at-fault accidents and comprehensive claims for incidents like theft or weather damage can potentially lead to adjustments in your premiums. We assess the risk based on the entirety of your claims history and driving behavior, so all claims, regardless of fault, are considered when determining your auto insurance rates. 

At Rockingham Insurance, we’re committed to providing clear, accurate information to help you understand your insurance options. If you have any questions or need further clarification about your policy, we encourage you to reach out to your local Rockingham Insurance agent. Our team is here to ensure you have the right coverage to meet your needs.