© 2026 AAA South Jersey
Servicing AAA members throughout Camden, Gloucester, Salem, and Cumberland counties.
Privacy Notice Terms and Conditions Go to Other AAA Clubs
Aug 31, 2015 | Insurance
What You Don’t Know About Your Coverage Can Hurt You.
Does driving a red car raise your insurance rates? Does your landlord’s insurance cover your apartment and belongings? AAA is taking on these and other common misconceptions that may lead to risky decisions when it comes to preparing for the worst.
“Insurance can seem complex and intimidating, and many people go by hearsay instead of asking their insurance company questions,” said Gene Castiglioni, spokesman for AAA South Jersey. “Spending a little time now learning about what’s covered and what’s not can help you avoid costly and emotionally draining consequences later.”
For a variety of reasons, many consumers don’t have adequate insurance coverage to deal with potential losses. “That’s why it’s so important to separate fact from fiction,” said Castiglioni. “AAA wants to make sure accurate information about these myths gets out so informed decisions can be made about the different types of insurance coverage.”
Here are some common insurance myths and the facts from AAA Insurance experts:
Many policies don't have a high enough limit to rebuild the home in case of complete destruction. Some homeowners will find themselves short tens or hundreds of thousands of dollars if their home is destroyed by fire or other disaster.
Standard home insurance covers disasters such as fire, lightning, theft, vandalism and damage from smoke, water or wind. It does NOT cover damage caused by a flood or earthquake. Flood and earthquake coverage can be purchased in separate policies.
There are limits on the amount of coverage you can receive for valuables such as jewelry, antiques, business property and art, but you can purchase endorsements that will add extra protection.
Many factors including a vehicle’s model, make, year, and the driver’s experience and age may impact your auto insurance rate, but the color of a vehicle is not one of them.
A spouse who stays at home may take care of children, chores, and transportation. In the unfortunate event of their death, these would become expenses that could be offset by the proceeds from a life insurance policy.
Your landlord’s insurance typically covers the building; it does not cover your personal property. You may also be liable for any structural and/or water damage that you cause. Renters insurance also covers your liability in case a guest in your home or apartment is injured.
This is rare and prohibited by law, but some mortgage companies try to require new homeowners to purchase insurance for the entire loan amount, which can be more than the replacement cost of your home. It is only necessary to cover the replacement cost of the home; land does not need to be insured.