6 Common Misconceptions About Insurance

6 Common Misconceptions About Insurance

While thorough research and life experiences can leave any policyholder feeling prepared and informed, a few myths can still linger about – convincing and confusing anyone who comes across them. 

True vs. False 

In order to not impact your understanding by the information that is, in fact, untrue, it’s important to uncover certain falsities. Below you’ll find a comprehensive list of common misconceptions about insurance that can potentially affect your auto coverage, life insurance policy, health, and more! 

6 Insurance Myths

• Getting a traffic ticket immediately increases the price of your premium.

False. As a new driver or one who is seldom involved in traffic violations, getting a traffic ticket generally will not affect your auto insurance premiums. For those who may have multiple tickets or violations may be able to take classes to reduce or remove any points that could potentially be affecting their premium.  

• “Full coverage insurance” covers any circumstance.

False. While “full coverage” is a frequently used term, it is not synonymous with “comprehensive insurance coverage”. Auto insurance companies can promise “full coverage” and a policy that includes liability and collision protection, but not cover certain reimbursements like roadside assistance or rental cars. In the health insurance space, “full coverage” can serve as the umbrella for both your routine appointments and hospital stays, but exclude covering certain specialist doctors, prescriptions, or even surgeries. 

• Health insurance is available for purchase at any time. 

False. Purchasing coverage as an individual can be a challenge for those who aren’t experiencing a qualifying life event, or eligible during a period of open enrollment. Likewise, applying for coverage through an employer can be delayed for similar reasons or a probationary period applied internally. In order to best prepare for your window of opportunity, be sure to understand what type of coverage is a good fit for you and what you may be willing to pay through gathering certain quotes and information. Insure Yes provides comprehensive quotes to answer questions in real-time. 

• Letting coverage lapse will save money. 

False. It may seem as though a few months without having to pay an insurance premium may allow you to put that extra cash in the bank. If you’re in good health, or without a car – this idea can be quite tempting. However, when the time comes for you having to reinstate your policy or need coverage with some level of immediacy, your premium will be higher than it was before you discontinued your coverage. Taking such a risk with your health and well-being and also your finances is ultimately not recommended. 

• Life insurance is only necessary for one family member. 

False. It’s important to keep in mind that while one person carries life insurance, it’s the policyholder’s family who benefit from the coverage if the policyholder’s life is lost. While it may seem like it is most important for the family member who holds the most financial responsibility to be the carrier, other factors should be considered and ultimately valued as just as important for other family members as well. Discussions around who primarily takes care of the home and children are important to fully understand your family’s needs. 

• State-minimum insurance coverage protects you from personal liability. 

False. Each state has established a minimum amount of insurance that a driver must have. While it is important to satisfy state requirements through your coverage, your financial liability is in no way benefitted through meeting them. It is important to have additional coverage to cover your responsibilities in the case of an accident where you or someone on your policy is at fault. 

Now that the above is clear, get a quote today to find out which life, auto, or health policy is the best for you through Insure Yes free quote generator today!