Know the truth behind these common insurance misconceptions.
There are misconceptions in every industry. Unfortunately, when myths gain speed in the insurance industry, it causes consumers to get confused about what insurance they need and why. We’ve debunked some of these common myths so that you can learn the truth.
My umbrella insurance policy covers me for everything.
While an umbrella insurance policy is designed to protect you from most things, it’s not designed to cover everything. A personal umbrella policy is there to provide an additional layer of liability protection on top of what your other personal insurance policies provide, meaning that there can still be gaps in coverage. For example, business activity is usually excluded from personal insurance policies, including umbrella.
I only need a comprehensive policy with my auto insurance.
Comprehensive coverage pays only for certain problems such as car theft, storm damage, animal collisions, and vandalism. Collision coverage helps to pay for car accidents. Only an all-encompassing auto insurance policy can cover your immediate risks.
My older car isn’t at risk of being stolen.
Believe it or not, but older cars are more valued among thieves because the market for their parts is bigger, and newer cars have additional theft safety features. If you want to cover car theft, buy comprehensive coverage.
I don’t need life insurance.
While life insurance isn’t for everyone, it is certainly needed for most people. Unless you have no dependents relying on you for financial aid and can pass on without any debt, you will need to secure some sort of life insurance.