We live in a time where insurance is more important than ever. It’s not just for car accidents and natural disasters anymore, but also for things like cybercrime, small businesses, and identity theft. With that said, there are still many people out there who don’t have any coverage at all. Stay tight as we explore 10 of the most common insurance myths to help you better understand why it’s so important to get some form of protection in today’s world.
Flood insurance is not necessary
One of the widely believed insurance myths is that Flood insurance is not needed unless of course, you live in a high-risk area. This misperception has led many people into trouble for ignoring the obvious.
The truth is that most floods are caused by a high volume of rain, not a rare hurricane. If your area gets heavy rains for more than two hours and you live in an area with ground-level living like apartments or homes without basements, then it’s important to have flood insurance. Flood insurance can cover up to $500,000 worth of damages if water enters through windows or doors on the lower levels of your home. The average homeowner only carries about $50-$100 thousand in coverage because they don’t know their risk level – so get some form of protection today.
If you buy a red car, you’ll pay more for car insurance.
Car owners may be surprised to learn that the color of their vehicle doesn’t affect premiums. One reason is that insurance companies take into account other factors, including age and accident history, in determining rates.
It is a complete lie to say the color of a car determines the amount required for Insurance. This insurance myth has been debunked long ago. If you have a problem with what decision to take, speak to a reputable firm for clarification and avoid hear=say.
If your car is damaged in an accident, insurance will always cover a rental car
Car insurance has some limits however the myth surrounding it is above reproach. Insurance companies don’t always cover rental cars.
In fact, some may require you to purchase a separate policy in order to have a car while yours is being repaired or replaced.
This can be costly and it’s important to check with your insurance company before renting any vehicle after an accident. It is never true that Insurance covers your rented car automatically unless you opt for it. For any doubts about Insurance policy, it’s important seeking help from a more reputable company to avoid such Insurance Myth.
Your landlord’s insurance policy covers your stuff
In the event of a theft, it may not be as simple. If you have renter’s insurance and your belongings are stolen through no fault of your own – say from a break-in or robbery – your policy should cover what was taken so long as it is insured under that plan. But if an appliance in the home malfunctions without being damaged by fire or smoke (or other unforeseeable circumstance), then there might be restrictions on coverage for those types of items.
A homeowner’s insurance would typically pay to replace these items depending on their particular limits and exclusions, but this only applies if they’re not living with renters who reside in the house too. Having said that, the best step is to speak to a professional Insurance entity for briefing.
Insurance costs more for cars when you get older
Here’s another myth about Insurance. The truth is that people who are over 55 and retirees or those employed less can get discounts on insurance. Older driver programs vary by state, so drivers should check with their insurance professional to see if they qualify for a car insurance discount. Drivers may also be eligible for other special discounts like veterans or military families (discounts available through the USAA). Some program requirements vary but there is an opportunity to save some money just because you’re older!
Auto insurance will cover damages in times of accident even if you are not the one driving.
Some auto policies also include medical payments coverage for injuries sustained in an accident whether or not involved as a driver or passenger; additional coverages such as comprehensive and collision insurance to protect against theft, vandalism, or fire; uninsured/underinsured motorists coverage if another driver does not carry adequate financial responsibility through their own policy; rental reimbursement which provides temporary transport while repairs are being made.
Soldiers pay more for insurance than civilians
Insurance discounts are available to anyone who is willing and able to purchase them. If you have a stable driving history, a good credit score, and the willingness to maintain insurance at all times, then you can reap the benefits of discounted rates.
It’s important for any business owner with employees or independent contractors that drive on company time (even if it’s only occasionally) to provide financial responsibility through their own policy; rental reimbursement which provides temporary transport while repairs are being made.; lesser liability coverage in case an employee causes harm; collision protection against theft or vandalization of your vehicle; comprehensive car insurance which includes some hazards not covered by standard policies such as fire damage from vandalism, tools lost when changing a tire.
Now it’s obvious that Soldiers are not different when it comes to insurance. It’s just about the chosen plan and if you can avoid it.
Conclusion on insurance myth
You may have heard that some insurance myths are true but there is a good chance they aren’t. Instead of sitting home and acting on just any news in the air, consider taking a talk with your insurance company for clarification.