When it comes to insurance, there are many misconceptions that are often accepted as fact. We’ve compiled some of the top insurance myths that we hear and provide a little more explanation as to why these statements shouldn’t be taken at face value. Read more to bust these common insurance myths!
1. Red cars cost more to insure
Many people think that red cars cost more to insure because Insurify found that drivers of red vehicles were 2 times more likely to have received a speeding ticket vs. green vehicles. Color is not a factor.
2. Vandalism and weather damage is covered by collision coverage
Collision coverage does not protect drivers from damages cause by theft or weather. To be 100% protected against all risks of physical loss, drivers should get collision and comprehensive coverage.
3. Homeowners insurance covers cars parked in a garage
Again, comprehensive coverage is needed to protect against claims such as theft or fire
4. Homeowners insurance covers flooding
A typical home insurance policy will cover certain water damage depending on how the loss occurs. Flooding caused by a storm or hurricane isn’t usually covered, and flood insurance would be needed to cover those losses.
5. I don’t need flood insurance if I don’t live near the water
Flooding can happen anywhere, even if you don’t live near a body of water. Things like heavy rain, hurricanes, or problems with water systems can cause flooding, no matter where you live.
6. Umbrella policies provide blanket coverage against all types of claims
Umbrella policies are a type of liability coverage that provide excess liability over underlying policies such as home, auto, watercraft, and more.
7. Only rich people need umbrella insurance
Many people believe that umbrella insurance is only for the wealthy, but that is not the case. Anyone can find themselves in a situation where their standard policy doesn’t completely cover costs associated with their loss.
If you have any other questions or preconceived notions about insurance, please do not hesitate to ask! We’d be happy to walk you through anything you may be unsure about.