Top 4 Insurance Myths Debunked
Insurance can be a little confusing to understand with all the technical jargon, the fine print, and the what-ifs. This air of confusion and misinformation leads many people to believe the myths floating around online and offline. You can easily end up making incorrect decisions that are not in your best interest.
Today, let’s clear up the 4 most commonly believed insurance myths and give you the facts you need to make smarter choices.
Myth 1: Red Cars Cost More to Insure Because They’re “Faster”
One of the most popular myths is that red cars are more expensive to insure because they’re faster or driven more recklessly.
The Fact:
The color of your car has no effect on your insurance rate. What really matters to insurance companies is your driving history, the type of car you drive, and how safe it is. For example, cars that are more likely to be involved in accidents or stolen could cost more to insure. So, if you love the color red, go ahead and buy the car! And remember, your driving habits play a much bigger role in your insurance costs.
Myth 2: Renters Don’t Need Insurance Because the Landlord’s Policy Covers Everything.
Some people think that if their landlord has insurance, they don’t need renters’ insurance.
The Fact:
Your landlord’s insurance usually only covers the building itself, not your personal belongings. If something happens, like a fire, water damage, or theft, your things won’t be covered. Renters’ insurance is affordable and can protect your furniture, clothes, and electronics. It can also offer liability coverage if someone gets hurt in your home.
Myth 3: Filing a Small Claim Will Automatically Raise Your Rates.
Many people believe that their insurance premiums will go up if they make small claims.
The Fact:
Filing a single, minor claim may not raise your rates, but filing too many claims may. Insurance companies look at different factors when deciding whether to raise your rates, such as the type of claim and how often you’ve filed in the past. Sometimes it’s a lot better to file a claim if the damage is huge. Paying for it out of your own pocket is not the best option in such cases. Just be mindful of how often you file and make sure it’s worth it.
Myth 4: Older Cars Don’t Need Comprehensive or Collision Coverage.
Some people believe that because their car is older, they don’t need full coverage.
The Fact:
Even older cars can benefit from collision and comprehensive coverage. Full insurance helps cover things like theft, vandalism, or weather-related damage. In the event of an accident, collision coverage protects your car. Even though your car might not be worth much, it could still cost a lot to replace or repair. Consider the cost of having your car repaired or replaced if something goes wrong.
Final Thoughts
Insurance doesn’t have to be confusing. When you understand the truth behind these myths, you can make better decisions that will save you money and protect your things. So, the next time you hear an insurance myth, take a moment to check the facts.
