The Top 5 Insurance Myths Debunked
By Megan Kossow
As someone outside of the insurance industry, you hear a lot of rumors and stories about insurance that aren’t always true. How these wives tales come to existence is beyond us, but luckily, we are here to set the record straight.
Insurance brokers and agents, like RightSure, hear things all the time that are untrue about insurance and as your trustworthy agents, we are here to help teach you about the truth of insurance policies. As an agent we have YOUR best interest at heart!
Here are our top 5 insurance MYTHS:
- Red cars cost more to insure - FALSE! The color of your vehicle does not play any role in determining how much you will pay for insurance. Factors that DO go into your insurance policy’s rate are the year, make, model, body type, and engine size of the vehicle you are trying to insure. Other factors that are considered when you buy an insurance policy are your zip code & your credit score. Most companies rate within zip codes, meaning that if your specific zip code has reported more driving activity (accidents, claims, etc.) then it is likely that your insurance rate will be higher.
- Your credit score doesn’t affect your insurance rate - WRONGO! Insurance companies look at something called an Insurance Score - which is derived from your credit history. Having a good credit score shows that you are financially responsible & is a good factor in determining whether you are likely to make a claim or not. This doesn’t only affect your new insurance policy; it can also affect when your policy renews, or you make a change to your policy. People with higher credit scores tend to have lower insurance rates.
- Personal auto policies cover business use - NOPE! If you are using your personal vehicle for business use, you must disclose this to your insurance company. Some companies have the option for you to add business use to your personal auto policy, others require you to get a business auto policy, it all depends. If you are unsure if you need to disclose the information to your company, contact your local agent and they will be able to help you determine this.
- Leaving your laptop in your car is covered by your auto insurance - UNTRUE! Personal belongings such as a laptop or your cell phone are not covered under your auto insurance policy. These things are generally covered under your home or renter’s insurance policy.
- A friend borrowing a car will be responsible for any damages caused - NOT THE CASE! In most states, the insurance stays with the vehicle, not the driver. This means that if your friend borrows your car and ends up causing an accident, your insurance company would need to pay for the damages.
We hope that after reading about these myths, you have a clearer understanding of what is and isn’t covered under your personal auto insurance policy!
Like we mentioned before, if you are unsure of something, ALWAYS call your insurance agent! They are there to discuss & teach things to you that you may be confused about.
Don’t have an insurance agent? WE CAN HELP! RightSure insurance is licensed to sell insurance in over 40 states and we have extremely knowledgeable staff on hand, ready to answer all your insurance-related questions!
You can give us a call at 520-917-5295
Also, check out some of our other free white papers on real-life insurance:
- How Five Real Life Exposures were addressed by Smart Insurance Strategies
- Twelve Insurance Myths you cannot afford to believe
- See all of our coverage solutions
- Download Top 10 Home Insurance Gaps Here
About RIGHTSURE
Headquartered in Tucson, Arizona, RIGHTSURE is an Insurance Technology firm leveraging cutting-edge products with Artificial Intelligence and Insur-tech relationships to help families and businesses in 42 states. By using a unique, client-centered approach, combined with superior technology, RIGHTSURE presents clients with a wide range of Insurance options and a seamless purchasing process. To learn more, visit https://www.rightsure.com or call 520-917-5295.
