Insurance Myths You Should be Wary of

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:

1. “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.
2. “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.
3. “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.
4. “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.