Most people have that neighbour – the friendly advice-giver who swears they “know how insurance works” because “that’s how my cousin’s policy used to be.” And while the intentions are good, a lot of the insurance “facts” that get passed around the driveway or over the fence are myths that stopped being true a long time ago (if they were ever true at all).
 
Let’s break down a few of the most common ones – the kind your neighbour might tell you with full confidence – and what actually happens in real life.
 

Myth #1: “If someone else crashes your car, their insurance pays.”
This one sounds logical… until it isn’t. In Ontario, auto insurance follows the car, not the driver. So if you lend your vehicle to someone and they get into an at-fault accident, the claim is tied to your policy, even if you weren’t there.
 
Your neighbour might not be wrong out of bad information – this used to be more common in other provinces. But here in Ontario, it’s your insurer handling the claim.
 

Myth #2: “Home insurance covers everything inside your house.”
Not quite. Standard home insurance covers many things, but not everything, and not always at full value. Things like high-value jewelry, collectibles, bicycles, fine art, or instruments often require additional coverage or specific limits.
 
Your neighbour may think, “If it’s in the house, it’s covered,” but the reality is: coverage depends on category, value, and how the loss occurred.
 

Myth #3: “If I don’t file claims, my rate will always stay low.”
Being claim-free helps, but your own history isn’t the only factor. Insurance rates are also influenced by where you live, weather trends, claim volume in your area, repair costs, and inflation. Even if you personally never file a claim, rising replacement costs or regional risk can still shift your premium.
 
Your neighbour might blame the insurer, but the bigger story is the economy and modern rebuild costs.
 

Myth #4: “I don’t need life insurance, I get some through work.”
Group life insurance through an employer is a great benefit, but it isn’t designed to replace income long-term or cover major debts on its own. And if you change jobs, retire, or lose coverage unexpectedly, it disappears.
 
Many people don’t realize how vulnerable that makes their family’s planning. A personal policy travels with you, not your employer.
 

So Why Do These Myths Spread So Easily?
Because insurance isn’t something most people talk about until something goes wrong. Most advice comes from memory, comparison, or a past experience from years ago – and the industry changes more often than people think. Policies today are written very differently than they were 10+ years ago.
 
That’s why a broker is so helpful: you get the real answer based on current coverage, not front-yard folklore.
 
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Your neighbour may mean well, but when it comes to protecting your home, car, or family, it’s always better to check with someone who works with insurance every day. If you ever hear a “fact” about insurance and wonder if it’s actually true, we’re always happy to clear it up.
 
If you’d like to chat with an advisor, contact us today and our team will be in touch.