Many times, what you see and hear about insurance is untrue! Even some of the things you’ve heard for years (something about red cars ring a bell?), are false and can cause you to make unnecessary decisions when deciding on insurance.

We want to make sure you are informed and ready to make informed choices when it comes to protecting you and your family with insurance, whether it’s home, auto, or even life insurance coverage.

Home

Myth #1: Flood damage is covered by your standard homeowner’s insurance.
Fact: Home insurance actually does not cover any flood damage. You will need a separate flood insurance policy, especially if your home is in a high-risk flood zone. Even if it isn’t at high-risk, according to the National Flood Insurance Program, over 20 percent of flood claims come from properties outside of this zone.

Myth #2: Renters are covered by their landlord’s policy.
Fact: If you rent an apartment from your landlord, any theft will NOT be covered by their insurance policy. Although renter’s insurance is typically only a small cost, 60 percent of renters put themselves and their possessions at risk by not having any coverage.

Myth #3: You should insure your home for the market value.
Fact: Although this may seem like a logical choice, you should instead insure your home for the cost to replace it. This includes any expenses that may be associated with rebuilding your home. By choosing to insure for just the market value, you may not have adequate coverage for the cost to completely rebuild your home.

Myth #4: Your at-home injuries are covered with liability coverage!
Fact: The only injuries that are covered with your homeowner’s insurance policy are those of guests who are injured on your property. This does not apply to your or any of your family members. Instead, you would need to reach out for your health insurance provider for any coverage for personal injuries.

Myth #5: All of your possessions inside the home are covered with your policy.
Fact: This is not true! And is why it is so important that you go over your coverage carefully with your insurance agent. There are limits on the coverage you get for certain possessions, typically jewelry and rare items. Don’t worry though – these can be covered for their full value with an additional policy.

Auto

Myth #6: Red cars cost more to insure.
Fact: Although this myth may be one of the most popular – it is untrue! The only factors that play into your premium cost are make, model, safety, credit history, and zipcode. So next time you’re in the market for a car – go for the red!

Myth #7: Comprehensive insurance means that everything is covered!
Fact: Even though this sounds like it would make sense, comprehensive insurance is for things like weather damage (hail, floods, etc.), fire, or any collision with an animal. Basically, it is for anything that may happen to your car that isn’t a collision with another car or an uninsured motorist.

Myth #8: If anyone else driving your car gets into an accident, their insurance will cover the damages and injuries.
Fact: Whoever owns the vehicle that was in the accident is usually considered responsible for any insurance coverage – whether that be medical bills or any damages to the vehicles.

Myth #9: Any and all traffic violations will cause your premium to automatically increase.
Fact: While of course you should do your best to avoid any tickets, getting one traffic violation does not always lead to any premium increase, especially if it is a minor violation. Increases typically happen when tickets begin to accumulate or if violations become more severe. All of this being said, a clean driving record can help you save money in most cases!

Myth #10: Anything stolen out of your car is covered by your auto insurance policy.
Fact: The bad news… If your favorite purse is stolen out of your car while you run into the grocery store, your auto insurance policy will NOT cover the cost to replace it. The good news is that this is considered personal property, and in most cases is covered by your home or renter’s insurance policy! This claim could be subject to a deductible.

Life

Myth #11: Life insurance is too expensive.
Fact: Life insurance can easily be affordable, as you can personalize the type and amount of coverage that fits best at your current stage of life. There is always the option to increase your coverage over time.

Myth #12: Stay-at-home parents don’t need life insurance.
Fact: There is a huge financial value that stay-at-home parents provide to the family. The cost of care-taking and hiring help could be a major financial burden. Life insurance can ensure that your family is well-taken care of without the concern of finances.

Myth #13: If you’re single, life insurance is pointless.
Fact: This is also untrue! It is important that even single people have enough coverage for their debts, medical bills, and funeral bills. Being uninsured can leave a financial burden for your family or executor. It also leaves the possibility to donate money to a meaningful charity.

Myth #14: If you develop a serious illness, my premiums will increase.
Fact: Your life insurance premiums are based on your age and your health while they were underwriting the policy. The company can’t change your policy because of a high risk hobby or illness that you did not have originally. This is why it is important to get life insurance, even if you seem to have no health issues at the moment. It will pay off in the future for the cost of your premiums.

Myth #15: You can just renew your term life insurance policy after it ends.
Fact: Term life insurance is just that – by term. After that specific amount of time ends, the policy is over. This type of insurance works great for families who have financial needs that will go away over time, such as paying for college or a mortgage. However, many people may want coverage past this time. It is best to talk with your agent to make sure you cover any potential future needs.

Now you know! The next time your friend wants to buy a red car, tell them to go ahead.

Our Swisher Insurance agents are here and ready to help you with any other questions or concerns you may have about your insurance policy. Feel free to reach us today by calling (502) 340-1200, emailing us at info@swisherinsurance.com, or sending a message here.

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