With Debunking Day coming up on March 11th, there’s no better time to clear up some long-standing misunderstandings about home and auto insurance—especially for families living in Hickory, Morganton, Lenoir, Newton, Conover, Granite Falls, Valdese, Taylorsville, and the greater Western North Carolina region.

 

Across our foothill and mountain communities, many people make insurance decisions based on assumptions or outdated information. Unfortunately, those misconceptions can lead to costly surprises—especially in an area known for heavy rainstorms, winding mountain roads, steep driveways, and older homes.

 

To help you stay properly protected, here’s a closer look at eight persistent insurance myths—and the truth behind them.

 

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Myth #1: “Red cars cost more to insure.”

 

The truth:
The color of your vehicle has absolutely no impact on your insurance rate.

Insurance companies focus on factors such as:

• Make and model

• Vehicle age

• Safety features

• Repair costs

• Your driving history

• Where and how often you drive

Whether you're commuting along Highway 321 or navigating through downtown Hickory, your car’s paint color is irrelevant. This is one of the oldest myths out there—and one of the easiest to debunk.

 

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Myth #2: “Only people in flood zones need flood insurance.”

 

The truth:
Flooding doesn’t follow a map—and that’s especially true in Western North Carolina.

Even if your home isn’t in a designated flood zone, you may still be at risk due to:

• Heavy rainfall

• Runoff from steep terrain

• Creek or river overflow

• Oversaturated soil

Areas near Lake Hickory, Lake Norman, Lake Rhodhiss, Lake James, Lake Wylie, throughout the Catawba River Basin, and even low-lying roadways have experienced unexpected water issues in recent years.

 

The key issue:
👉 Standard homeowners insurance does NOT cover flood damage.

That means even a few inches of water in your home could result in significant out-of-pocket costs. For many homeowners in our region, a flood policy—whether through NFIP or a private carrier—is worth serious consideration.

 

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Myth #3: “Older cars don’t need full (physical damage + liability) coverage.”

 

The truth:
While older vehicles may have lower market value, they still play a critical role in your daily life.

North Carolina requires liability coverage regardless of vehicle age, and if you rely on your car for:

• Work

• School

• Family transportation

• Navigating rural or mountain roads

…then dropping comprehensive and collision coverage could put you in a difficult financial position if something happens.

 

Ask your agent about the difference between policies written on an Actual Cash Value (ACV) basis versus Replacement Cost. Most people think about settlement types in terms of homeowners policies, but some auto policies also offer replacement cost coverage depending on the age and ownership of the vehicle.

 

The real question isn’t:
“How much is my car worth?”

It’s:
“Could I afford to replace it tomorrow if I had to?”

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Myth #4: “Homeowners insurance covers everything I own.”

The truth:

Homeowners insurance includes personal property coverage, but it does not automatically cover everything at full value.

Many high-value items exceed standard policy limits, including:

• Jewelry

• Firearms

• Artwork

• Antiques

• Specialized tools or equipment

These are especially common in homes across Hickory, Morganton, and Lenoir, where many residents own unique or valuable personal property.

To fully protect these items, you may need:

• Scheduled endorsements

• A separate policy

Without this step, you could face significant gaps in coverage after a loss.

 

Additionally, flood, earth movement, wear and tear, and intentional acts are common exclusions on almost all policies unless specifically added by endorsement. The good news is that you can purchase policies—such as flood insurance—to help cover some of these gaps.

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Myth #5: “Anyone who drives my car is covered.”

The truth:

This is one of the most misunderstood areas of auto insurance—and one that can lead to serious claim issues.

While many policies cover permissive drivers, there are important limitations:

• Permission can be expressed or implied (and it matters which)

• Some policies exclude specific drivers

• Business use (deliveries, gig work, etc.) is typically not covered

• Failing to list household drivers can result in claim denials

In general:
👉 Insurance follows the vehicle first (primary)
👉 Then the driver (excess)

Additional complications can arise with:

• Garaging address discrepancies

• Vehicle ownership and titling

• Insurable interest issues

With many Western NC households sharing vehicles among:

• Family members

• College students

• Coworkers

…it’s critical to confirm your policy properly reflects who is driving and how the vehicle is being used.

 

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Myth #6: “I don’t need homeowners insurance because I have savings.”

The truth:

Even strong savings accounts can fall short after a major loss.

Rebuild costs in North Carolina continue to rise, and many homes—especially in mountain or rural areas—can cost significantly more to repair or rebuild than expected.

Homeowners insurance doesn’t just cover the structure—it also provides:

• Liability protection

• Personal property coverage

• Additional living expenses (ALE) if your home becomes uninhabitable

Imagine needing to relocate temporarily after a fire or storm. Without coverage, those costs can add up quickly.

 

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Myth #7: “My auto policy automatically covers rental cars.”

The truth:

Many auto policies do extend coverage to personal-use rental vehicles, but there are limitations.

Business use is often excluded, and coverage can vary depending on:

• Policy structure

• Vehicle type

• Duration of rental

• Where the vehicle is rented (whether it falls within your policy’s coverage territory)

Before declining coverage at the rental counter—whether you’re flying into Charlotte Douglas Airport or heading out of town—take a moment to verify what your policy actually covers.

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Myth #8: “My credit score doesn’t affect my insurance rate.”

 

The truth:
In most states, including North Carolina, insurers use a credit-based insurance score as part of their rating process.

While we do offer some carriers that do not use credit as a rating factor, the reality is that credit is a strong predictor of risk and exposure, which is why many carriers incorporate it when determining your rate.

A stronger credit profile often results in:

• Lower premiums

• Better overall pricing options

If your credit score has improved recently, it may be worth reviewing your policies to see if you qualify for better rates.

 

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Quick Tips to Prevent Coverage Gaps

 

Being proactive with your insurance can help you avoid surprises—especially in a region where weather, terrain, and property types create unique risks.

Here are a few best practices:

• Review your policy annually

• Update coverage after renovations or major purchases

• Ask your agent to clearly explain exclusions

• Maintain a home inventory (photos and values)

• Understand the difference between:

  • Replacement Cost

  • Actual Cash Value

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When to Revisit Your Insurance Coverage

 

You should review your policies anytime there’s a major life or financial change, including:

• Buying or selling a home or vehicle

• Completing renovations or upgrades

• Marriage, divorce, or a growing family

• Adding a teen or new driver

• Changes in income or credit

• Purchasing a dog (some breeds may be excluded from coverage)

• Running a home-based business

 

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Final Thoughts

 

Whether you’ve believed one of these myths or simply want more clarity, Debunking Day is the perfect opportunity to take a fresh look at your insurance.

 

The goal isn’t just to have coverage—it’s to have the right coverage, structured properly, with no hidden gaps.

If you’re unsure where you stand, I’m here to help. We can walk through your policies together and make sure everything aligns with your needs—whether it’s your home, auto, or business here in Western, Piedmont, Central, or Coastal North & South Carolina.

 

👉 Reach out anytime to schedule a quick, no-pressure policy review. We have very knowledgeable insurance specialists ready to help you navigate this complex industry.