How many of these insurance myths do you regard as true? Check them out:
Myth #1 – I should buy more insurance coverage for my house based on its real estate market value. The reality is that you should buy coverage based on a home’s cost to reconstruct (materials and labor).
Myth #2 – Red cars cost more to insure because they get pulled over for speeding more. The reality is that car color doesn’t affect insurance rates.
Myth #3 – If I cause a crash with extensive damage to others, my auto insurance company can cancel me immediately. The reality is that if an insurer wants to drop a customer due to claims, it generally has to wait until the policy period is up.
Myth #4 – Small cars are cheaper to insure. The reality is that small and mid-size SUVs and minivans are generally the cheapest to insure. Small cars are not, often because they’re chosen by more inexperienced drivers who tend to make claims and because passengers incur more expensive injury claims.
Myth #5 – Comprehensive auto insurance covers everything and anything. The reality is that comprehensive coverage is tragically misnamed. It covers only narrow portions of possible problems, including car theft, storm damage, animal collisions and vandalism.
Myth #6 – Thieves prefer to steal new cars. The reality is that it’s more lucrative for thieves to steal old cars and sell them for parts.
Myth #7 – If my friend borrows my car and crashes it, their insurance will pay for damages. The reality is that you and your insurance are on the hook when someone else drives your car.
Myth #8 – Out-of-state speeding tickets can’t follow you home. The reality is that they do.
Get more facts about insurance myths from E. R. Munro and Company by calling 1-877-376-8676.
