5 Insurance Myths That Could Cost You Money (and What to Do Instead)

As the year comes to a close, it’s a great time to review your coverage and clear up common misunderstandings about insurance. Many costly decisions are based on myths, not facts. Let’s break down five common insurance myths and what you should do instead to protect your health and finances.

Myth #1: “I only need insurance if something bad happens.”

• Insurance isn’t just for emergencies, it supports preventive care and routine health needs.
• Waiting until you’re sick or injured limits your options.
• Medical costs can escalate quickly without coverage.

What to do instead:

• Maintain consistent coverage to protect against both minor and major health events.
• Use preventive benefits to reduce long-term risks.

Myth #2: “The cheapest plan is always best.”

• Low premiums often come with high deductibles.
• Out-of-pocket costs may be significantly higher.
• Limited provider networks could restrict your care options.

What to do instead:

• Compare total annual costs, not just monthly premiums.
• Evaluate deductibles, co-pays, and maximum out-of-pocket limits.

Myth #3: “I can skip coverage for short gaps.”

• Even a brief lapse can expose you to large medical bills.
• Accidents and illnesses are unpredictable.
• Gaps may affect enrollment eligibility later.

What to do instead:

• Plan ahead if transitioning between jobs or coverage types.
• Explore Special Enrollment options if you qualify.

Myth #4: “My coverage doesn’t need to be reviewed every year.”

• Plan benefits, provider networks, and costs change annually.
• Income changes can impact subsidy eligibility.

What to do instead:

• Schedule an annual review during Open Enrollment.

How to Talk to Your Agent About Smart Choices

• Ask about total estimated yearly costs.
• Discuss expected medical needs.
• Confirm provider and prescription coverage.
• Review eligibility for savings or supplemental options.

Understanding the facts helps you make confident, informed decisions. Don’t let myths cost you money, end the year strong by reviewing your coverage and planning wisely for the year ahead.