26 Dec Insurance Myths You Should be Wary of
There are a lot of myths about different types of insurance that have circulated throughout the years. Some of the more common myths include:
- “If I own a red car, I will have to pay more for my auto insurance.”-We are not really sure where or why this rumor started. The truth is that the color of your vehicle makes absolutely no difference when calculating your insurance premium rate.
- “My wife is a stay-at-home parent. She doesn’t need a life insurance policy.”-Think of all the duties your stay-at-home wife completes each day. If she were to suddenly be gone, how would you handle the workload? Childcare alone could cost you more than you think it could. Having a life insurance policy for all members of your family can help reduce the financial burden if a family member were to pass away unexpectedly.
- “I do not live near the water, so I do not need flood insurance.”-As it turns out, there are more flood claims submitted from areas that are not considered high-risk flood zones than there are from high-risk areas. Any water that comes into your home from the ground is considered flooding and may not be covered by your regular homeowner’s policy. Call to get a quote for a flood policy today.
- “The state minimum insurance requirement is $XX, so that’s all I need to get to be covered.”-Unfortunately, the minimum requirements may not cover as much of a loss as you may think. It is highly recommended that you purchase as much liability insurance as feasibly affordable. Without it, you could risk having assets seized if a liability claim is filed against you and your insurance does not fully cover it.
When searching for insurance information, it is always a good idea to check your source before believing everything you may hear. Call us for clarification on any myths you may have heard about the insurance industry.