There is a minefield of misconceptions surrounding insurance.

Many people fall victim to these misconceptions in the quest to save money – such as not buying a red car because they think it will cost more to insure. It’s time to debunk some of these insurance myths. Below are 10 common insurance fallacies cleared up.

Myth #1: Renters don’t need home insurance

While your landlord is responsible for repairs and will typically have some type of building insurance in place to cover disasters, their insurance will most likely not cover any of the contents of your home. So if there’s a fire or burglary, and all your possessions are destroyed or stolen, you will not get any compensation to replace these items. This is why all renters should look into contents insurance – it’s often fairly cheap and could be a huge help if the worst does happen.

Myth #2: Home insurance will cover flood damage

Home insurance typically covers you against theft, fire and storms – but rarely does it cover policyholders against flood damage. This is something that some homeowners discover too late, leading to expensive flood damage repairs that need to be paid out of one’s pocket. If you live in a flood-risk zone, check whether your home insurance policy protects you from floods – and if not, take out flood insurance. Be warned that flood insurance can be quite expensive if your home isn’t suitably flood-proofed. In fact, often it’s better to just invest in flood-proofing measures.

Myth #3: Third party auto insurance is cheaper than fully comprehensive insurance

This is a classic myth that many new drivers falsely believe. It’s logical to assume that fully comprehensive insurance costs more than third party insurance, because it provides more cover. However, as many case studies have found, comprehensive insurance is something the same price or cheaper than third party insurance. This is because insurers that settle for the minimum amount of cover are statistically more reckless and likely to get into more accidents – making them often greater risk. Not every insurer thinks like this, but it’s surprising how many insurers do charge less for fully comprehensive auto insurance.

Myth #4: Red cars are more expensive to insure

Another age-old auto insurance misconception is the idea that red cars cost more to insure than other colored cars. But in reality, this isn’t the case – most insurers don’t take color into account. Instead, insurance rates are based on the model and make. While red is associated with sports cars, there’s no evidence that people that drive red cards are faster and more accident-prone, and so insurers tend not to care whether your car is red or blue or green.

Myth #5: Older cars are always cheaper to insure

Older cars are typically lower value, and this can often mean lower insurance rates. However, this doesn’t mean that all older cars are cheaper to insure. Some older car models can actually cost more to cover than newer cars, because they have less safety features and because they have been involved in more accidents. This is something to be wary of when looking for a car that’s cheap to insure.

Myth #6: Parking your car in a garage can save you a lot of money

Insurers will typically ask about your parking situation when you take out auto insurance. Some people assume that parking a car in a garage will save them huge amounts of money. While it can result in a discount, it is often a very minimal discount. In fact, in some cases, selecting ‘parked on a driveway’ instead of ‘parked in a garage’ can save you money. This is because garages are enclosed spaces that can sometimes increase the risk of accidents while parking.

Myth #7: You don’t need insurance to test-drive a vehicle

It’s actually illegal to test drive a car without insurance in many states. Fortunately, a car dealership will often have insurance in place to cover you. However, if you’re buying from a private seller, it’s up to you to take out temporary insurance while you test-drive the vehicle. There are several apps and sites that you can use to take out test drive cover – and it usually only costs a few dollars. This is worth having in case you do get in an accident during a test drive.

Myth #8: You can’t get life insurance after the age of 60

Life insurance does get more expensive and harder to obtain the older you get. However, the idea that you become uninsurable after the age of 60 is nonsense. Most life insurance companies offer Over 60s and even Over 70s life insurance. Over 80s life insurance is much rarer, but does still exist. In other words, you are never too old to take out life insurance. Some life insurance providers may not even require a medical exam to be carried out, making it possible to take out life insurance without health conditions affecting your rates.

Myth #9: You can’t get health insurance for pre-existing conditions

Many health insurance providers will not cover you for treatments related to pre-existing conditions. However, there are many specialist health insurance providers that do offer cover for such conditions – particularly if you’re still quite young and have been managing your condition well. Such insurance policies can be more expensive, but could be worthwhile for insuring you against the most pressing health risks.

Myth #10: You can’t get pet insurance for older pets

The best time to take out pet insurance is when a pet is still young, as it’s possible to take out lifetime policies with affordable fixed rates. Once your pet gets older, insurance rates can be more expensive, but it doesn’t mean that your pet cannot be insured. There are many pet insurance providers that will still offer pet insurance to older pets – even those with health conditions. This can be more affordable in some cases than having to fork out a large lump sum for treatment later on.