A local agent can help you avoid these insurance myths:
“I should buy insurance for my house based solely on its real estate value.”
52 percent of those polled think this is true, but here’s a tip: buy coverage based on the cost to reconstruct your home. In many areas of the country, rebuilding costs are quite different from the real estate market value.
“If my friend borrows my car and crashes it, their insurance will pay for the damage.”
Handing your keys to a friend or neighbor is like handing them access to your future insurance rates. If there is damage the claim goes on your auto insurance and can affect your rates for years to follow.
“All the members of my home are covered by my homeowners policy.”
The personal property of roommates, companions, and even family members–like brothers and sisters–in your home are not covered under your homeowner’s policy in the event of a loss. This requires a renter’s policy to make sure their items are covered.
“If I have a vehicle insured for liability only and I am involved in an accident with an individual who has no insurance, my insurance company will repair my vehicle.”
If you insure a vehicle for liability only you are responsible for any repairs to your vehicle not the insurance company. You may have a legal case against the uninsured party but the insurance company is not required to fix your car.
“If minimum liability limits are all the state requires then that is all I need.”
In today’s world, most states minimum liability requirements do not offer adequate protection. Most people should have liability limits of at least 100/300/100 in today’s age of increased medical cost as your liability helps pay bodily injury you may cause in an accident.
The bottom line: You should seek out an insurance company with licensed agents who will work with you to ensure your family is properly protected.