There are certain myths and misunderstandings that exist in the insurance industry, and if you’re not careful, you can fall victim to one of these ‘insurance myths’—which could end up costing you money.
Fortunately, we’ve managed to put together an infographic that will clear up many of these misunderstandings.
One of the biggest mistakes small businesses can make when it comes to their insurance coverage is to rely on the cheap and easy insurance options available online.
You don’t have to be an expert in insurance to know that you’re probably not getting great value for your money when you compare rates from different companies side-by-side.
1. No One Gets Sick on Vacation
Many people believe that you can’t get sick while you are vacationing. This isn’t true at all. You can catch a cold or get an illness from going out with someone who has it. If you go to the doctor or the hospital for treatment, you may become infected.
In order to avoid this, it is best to be careful about what you eat and drink. Don’t eat foods that are full of preservatives and junk food. Make sure that you get plenty of water so that you stay hydrated.
2. Auto Insurance Doesn’t Pay for Accidents
When people ask me about my auto insurance policy, they often ask me about the reason that it doesn’t pay for accidents. One of the most common myths about auto insurance is that it won’t pay for accidents.
This is not true at all. Auto insurance does pay for accidents. You may have heard a lot of things about auto insurance. There is no such thing as an insurance company that will insure a car if you are driving a car without insurance.
That’s not possible. Auto insurance is required to cover your car if you hit another car or if you crash into another car or building. It is also important to understand that it’s not just about the amount that you pay to the insurance company.
It’s about the total cost of your auto insurance policy. For example, the average annual cost for full coverage is $1,400.
3. Medical Insurance Is Only For Emergency Situations
People often think that medical insurance is only for emergency situations. Actually, medical insurance is for a lot more than that. It is for regular checkups and for things that happen over time.
This type of insurance is especially important when you are older. When you are young, you can’t afford to lose a day’s work, and you don’t have much to lose.
But, when you get older, you may lose a lot if you become sick and cannot work. You need to protect yourself against things that can happen to you.
If you have an accident or something happens to you, medical insurance will cover your expenses. This insurance is very important, and you should get it if you can. It pays for your medical expenses if you get injured.
Your car insurance also covers your medical expenses. But, the difference between medical insurance and car insurance is that medical insurance is for emergencies.
4. Car Insurance Is Worthless if You’re Young and Healthy
According to an insurance company, if you’re young and healthy, car insurance is completely useless. In fact, they think that insurance companies should not offer car insurance to young drivers because they won’t be using it very much.
Insurance companies think that it is riskier to sell them car insurance because younger drivers usually have a higher risk of getting into accidents.
When you are purchasing insurance, you need to be careful of what you are getting. It is very expensive. The premium for car insurance usually runs in the range of $100 or more per month.
You can lower the cost of the insurance by buying a policy with higher deductibles. This means that you pay more money out of your pocket before the insurance starts covering the loss.
As an example, you could purchase a policy with a deductible of $500. In other words, you would be paying $500 from your own pocket before the insurance company pays anything.
After the accident, the insurance company will pay $500 from your insurance. If you have a higher deductible, you can save a lot of money.
But, if you have a serious accident that causes you to be in the hospital for a long time, you won’t be able to use your insurance.
5. Homeowners Insurance Doesn’t Cover Flooding
Many homeowners believe that their insurance policy covers flooding. The truth is, they don’t. In fact, flood insurance coverage is required by the government to provide extra protection against flooding.
Homeowners with flood insurance can apply for reimbursement if their property is damaged by a covered flood event. There are three types of flood insurance programs available: individual, group, and commercial.
Each has its own advantages and disadvantages. For example, group and commercial policies can cover more properties than an individual policies. But, they usually cost more and are less flexible than an individual policy.
If you think that your home has been damaged by flooding, you can call your insurer to find out what type of insurance coverage you have.
6. Life Insurance Is an Inevitable End-Game for All of Us
Life insurance is a topic that a lot of people don’t really understand. When it comes to life insurance, there are a lot of myths out there that are not true. One of those myths is the idea that life insurance is a necessary expense.
If this is true, it means that we can’t afford to buy life insurance. However, is it necessary? Life insurance is definitely important.
Everyone needs life insurance. However, it is important to understand how life insurance works so that you will know if you actually need it.
Life insurance is an inevitable end-game for all of us. It’s the most common type of insurance and people use it all the time. It’s also the most common type of insurance used to protect the health and finances of a family.
It’s important to understand the basics of life insurance so that you know what to expect and how to make sense of it all.
Conclusion
Myths often get repeated so many times that people start to believe them without question. In other words, they don’t bother to check the facts. Here are six insurance myths that you may have heard before, and they are simply not true.
You’ll learn six insurance myths that can leave you exposed. And you’ll learn how to protect yourself and your family from potentially devastating financial losses.
