1. MY SPOUSE WANTS A LIFE INSURANCE POLICY BUT I DON’T THINK IT’S NECESSARY.
- If you have signed up for a life insurance, your life is INSURED
- Debt, Income, Mortgage, Education
- Explain Death benefit or face value of policy ($50,000, $250,000, $500,000)
- The Death benefit is the amount of money that will be dispersed if you happen to die, become disabled, or be diagnosed with a terminal illness
- Quality of life, things family is accustomed to having, cleaning service etc.
2. I ONLY NEED LIABILITY INSURANCE FOR MY VEHICLE NOT COMPREHENSIVE AND COLLISION.
- Liability insurance covers you and your family if you are at fault in an accident
- Collision coverage will cover costs to repair your vehicle (minus your deductible) in the case of hitting a pothole, car , or other object
- Comprehensive coverage will cover costs to repair vehicle (minus your deductible) If your car is flooded or if you hit a deer, theft, vandalism, or hail
- It is very important think about the potential risks in your area when researching your insurance policy
- Know the value of your car, this helps when knowing how much C&C to get
3. IF I LEND MY CAR TO A FRIEND AND THEY CRASH IT, THEIR INSURANCE WILL PAY FOR IT.
- Makes sense that their insurance would pay
- Insurance follows the vehicle, not driver
- Make sure you have permission to borrow the car from the owner of the policy of which the car is insured!
- Your insurer will bear the responsibility of insuring the car
- Once the accident exceeds your policy limits, the other car policy will pay the rest (secondary insurance)
4. I DON’T NEED RENTAL CAR INSURANCE BECAUSE MY CREDIT CARD WILL COVER ME.
- Many credit cards will cover collision insurance only
- You are responsible for the other cars damages if you are at fault
- Sometimes credit card will restrict coverages based on where you travel
- Take time to find out what Is covered
5. HEALTH INSURANCE IS AVAILABLE TO PURCHASE WHENEVER I NEED IT NO MATTER WHAT.
- Strictly UNTRUE
- Purchasing health insurance in the individual market and off the exchange must be done in OPEN ENROLLMENT or one must experience a life qualifying event
- Got a new job?
- You may have to wait 30-60 days for your company’s insurance plan to take effect and become active
- Have all the information about this readily available
6. MY HEALTH INSURANCE WILL COVER ALL MY MEDICAL EXPENSES, NO MATTER WHERE I
- This is untrue
- Insurers negotiate payment rates with groups/networks of providers
- Your provider may be OUTSIDE of your network
- In this case your insurance may not pay the whole medical bill
- More out of pocket expenses
- Make sure your provider is in network to avoid crazy bills
- Trust me I KNOW
7. MY STATE’S MINIMUM AUTO LIABILITY COVERAGE IS SUFFICIENT.
- Depending on the accident or claim this may be terribly false
- Liability Insurance only covers the loss of the other involved vehicle
- Expensive Car, more than one vehicle, death
- Have you checked your policy’s limit for bodily injury?
- Imagine a death caused by your mistake
- Could be millions of dollars in settlements
- In this case you would be responsible for an unbelievable amount out of pocket
- 100/300/100 with $500 Comprehensive & Collision insurance
- Solid & Sufficient policy to cover both involved vehicles
8. HOMEOWNERS INSURANCE MEANS I’M COVERED FOR FLOODING LOSSES
- Think again
- Flood damage is not a covered provision in a standard homeowner policy
- To have flood insurance you must purchase coverage specific to flooding
- Flood Zone, LAKE, Creek, Pond look into flood insurance
- 30-day waiting period before coverage takes effect
8 Common Misconceptions About Insurance
Posted by Augusta Insurance Professionals on Wednesday, October 9, 2019