In this article I will address the most common insurance misconceptions. These are beliefs that are not true or just have been twisted somewhere along the line and I hope to correct the beliefs.
As a former agent in the beginning of my career so many client that had full coverage on their vehicle were always under the belief they had rental car on their policy. By the way full coverage insurance if you did not know covers your liability and repairs your vehicle if it is damaged for any reason. So our first misconception is if I carry full coverage insurance I have rental Car.
Wrong, rental car coverage is an optional coverage and if you did not request it the odds of it not being on the policy are very good. Be sure to contact your agent and verify that rental car coverage is on your policy, because if you need the rental car coverage the agent is not liable if it was not on the policy when you signed. If you did not understand your policy when you purchased it, have your agent explain it in plain English. I got so use to insurance terminology that I would speak over my clients head and not realize it until I saw the funny looks on there faces.
A side note to rental car coverage is it will not pay for you to take a rental car for pleasure use. Rental car coverage is only used if your vehicle is being repaired by the insurance company.
Now let’s look at homeowners insurance. The misconception here is my home insurance will cover everything. Home insurance will cover everything except flood, earthquake, and sinkholes. Most everyone learned with, Katrina the hurricane, that flood damage is only covered by a flood insurance policy. Most are surprised to learn that earthquakes are not covered, but it is an optional coverage you can add to you policy the cost should be between $50-$100 a year. I always added it without asking the client, but would point it out and show the client that our little town sits on a fault line which has never been active. Sinkholes are not covered in any fashion but many states are making mandates that insurance companies must cover sinkhole damage.
The last misconception I will cover is that so many clients would contact me wanting to get a million dollar life insurance policy. I would have to inform that that insurance companies will only cover someone for such a large amount if they can prove they are worth such an excessive amount. Half a million is more common and no proof is required, but with a million you need to show all assets, income and a justifiable reason for such a large amount.
Thanks for taking the time to read my article, which I tried to keep at a reasonable length. As owner and operator of www.memphisinsurancequotes.net we try to educate and help people get the lowest insurance rate possible.
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