Insurance Myths

Myth #10: I have Health Insurance, so I don’t need medical coverage on my Car Insurance.
Some health insurance plans limit coverage or have high deductibles, so having medical coverage gives you added protection. It will also cover passengers in your car, regardless of who causes an accident.

Insurance Myths

Myth #1: Flooding insurance is only important if you live in a high-risk area.
Not true. 20-25% of flood claims come from outside high-risk areas. Home owners are 4 times more likely to sustain a loss from a flood than a fire. Remember, homeowner’s policies don’t cover flood situations.

Myth #2: Umbrella Insurance isn’t important for everyone.
You don’t have to be wealthy to be sued. Lawsuits are common...making umbrella insurance even more important. It gives you added liability protection above and beyond the limits on personal home, auto, and watercraft insurance policies. For a relatively minimal amount, you can add an additional $1 to $5 million in protection.

Myth #3: Renter Insurance isn’t necessary if your stuff isn’t worth a lot.
Do you care about being sued? Renter insurance does more than protect personal property. It covers personal liability if someone gets hurt at your home. Lawsuits are common, so be protected. Also, the replacement value of personal property adds up quickly if you should lose everything in a disaster.

Myth #4: My car is old, so I don't need to have high insurance limits.
The age of a car has no impact on your potential liability if you’re in an accident, so you need to have good liability limits. It can make sense to remove “comprehensive” and “collision” coverage, but only if you can afford the risk and cost of having to replace the vehicle on your own.

Myth #5: If someone driving my car causes an accident, I won't be held responsible.
While the “points” for being at fault in an accident affect the driver’s rating, the insurance policy covering a vehicle is considered primary. So, if someone else is driving your car, your insurance company would have to pay damages in an accident.

Myth #6: Only the “Breadwinner” in the home needs Life Insurance.
Think about the value contributed by a “non-working” spouse…childcare, housekeeping, food preparation, home accountant, school transportation and more. It’s often more than a full time job. You should buy life insurance if the absence of a person’s income or contribution would cause a financial hardship.

Myth #7: If I become disabled Social Security will take care of me.
Don't count on Social Security to take care of all your needs if you become disabled. You also need other plans to reduce impacts to your lifestyle. We insure our cars, homes, etc., but often don’t think about disability insurance as protection if we are unable to work and earn an income.

Myth #8: I drive a company car, so I don’t need my own Auto Insurance.
The car may be covered, but your liability probably isn’t. Even if your employer has coverage that provides some liability protection, it may not be enough, or you could be sued personally in a bad accident. Also if you borrow or rent a car, you should have your own protection. Being listed on another auto policy isn’t enough to protect you because business use is different. You need to purchase special protection.

Myth #9: All Car Insurance Is the Same.
When comparing policies, you can’t look at price and not consider the level of protection. Any provider can reduce your coverage limits to reduce your premium, but you end up at risk. Smart ways to save are:
· Increasing your deductible
· Get all possible discounts.
· Talk to your agent periodically because changes in life can change your needs.

Myth #10: I have Health Insurance, so I don’t need medical coverage on my Car Insurance.
Some health insurance plans limit coverage or have high deductibles, so having medical coverage gives you added protection. It will also cover passengers in your car, regardless of who causes an accident.

Myth #11: My Health Insurance will pay for my long-term care needs.
Health insurance doesn’t cover custodial care. Your options are:
· Use personal savings
· Rely on family to help
· Get Long-Term Care Insurance

Myth #12: I only drive my car occasionally, so I don’t need higher limits.
The possibility of an accident is the same whether you drive a car every day or once a year. Your liability for injury you cause or property you damage isn’t diminished because you don’t drive often. Make sure you always have good protection limits. If you’re looking to reduce expenses, consider increasing your deductible.

Myth #13: I’m self-employed and don’t have employees. Workers' Comp Coverage isn’t available.
Workers' Compensation insurance laws have changed. In the past, you couldn’t get coverage if you didn’t have employees, but that’s no longer the case. You can protect yourself from on the job injuries with Workers' Comp.

Myth #14: I’m self-employed and don’t have employees. I don’t need Workers’ Comp Coverage.
You’re your own “employee”, and you can get hurt, too. How will you support yourself if you get hurt on the job and can’t work? Workers’ Compensation coverage is important even if you’re a one man operation. Make sure you take care of yourself and those who depend on you.

Myth #15: Commercial Auto Policies cover equipment and tools left in a vehicle.
Only equipment permanently attached to the vehicle is covered. Loose tools and equipment are not such as pick-up truck tool boxes and contents because they aren’t permanently attached. To protect tools, supplies and equipment while in transit you need to add specific coverage.

Myth #16: All Insurance Providers are the Same.
This misconception could cost you money, service and protection. Buying insurance isn't like buying milk or eggs. There are 3 different sources for insurance, and your choice of provider makes a difference: Independent Insurance Agents, Captive Agents, and Direct Writers. Beyond options, it’s also wise to consider the ongoing support you’ll receive as your needs change and should you need to make a claim.

Myth #17: If I’m not at fault in an accident, the other person will pay.
This assumes he has coverage. Some people have no insurance or only minimal insurance that won’t cover damage they cause to others. Even if you sue them, you may not be able to recover damages. The best way to protect yourself is having good limits on your own policy for the specific parts that cover being hit by an “uninsured" or “underinsured” driver.

Myth #18: I use my car for my delivery job. I’m not self-employed, so I’m still covered.
If your vehicle is used for anything but personal use, then you probably need to extend your personal auto policy to cover business use of your vehicle. Be sure you understand what is and what isn’t covered by your policy. The best way to find out is to review your policy and call us with questions.