There are many myths regarding insurance. When you’re working with an insurance agent in Dallas to shop for a policy, whether it’s health, auto, or home owners insurance coverage, it’s best to make sure any misunderstandings are cleared up. That way you can be sure you’re getting exactly what you need. Take a look at some of the most common misconceptions when it comes to insurance and learn the truth behind the myths.
Myth: Your home owners insurance coverage should be based on real estate market value.
Fact: You should purchase coverage based on what it would cost to rebuild your home if a worst case scenario occurred, such as a tornado or fire. In many areas, the cost to rebuild is not the same as your home’s value on the real estate market. A Texas insurance agent can assist you in calculating the cost to rebuild your home.
Myth: Red cars are more expensive to insure.
Fact: The color of your car does not influence insurance rates. You may be surprised to learn insurance companies don’t use the color of your car at all to calculate your rate.
Myth: Your auto insurer will immediately cancel your policy if you cause a crash with extensive damage.
Fact: In most states, insurers cannot cancel your policy mid-term because of a claim. If a company doesn’t want to insure you any longer, they will have to wait until your policy expires and then let know they will not be renewing your policy. However, if you don’t pay your premiums, you can be canceled any time.
Myth: You’ll pay less for insurance with a small car.
Fact: According to a study from Insure.com, drivers of small and mid-size SUVs and minivans pay the least for insurance. Small cars are often driven by younger, inexperienced drivers who tend to submit more claims. In addition, small cars have more expensive injury claims because they lack the protection and weight of larger vehicles.
Myth: Under the Affordable Care Act (ACA), health insurance companies can base your rate on your medical conditions.
Fact: The ACA, also known as Obamacare, expressly disallows this. Health insurance companies cannot base your rate on pre-existing conditions. They also cannot charge different rates for women and men.
Myth: Comprehensive auto insurance covers everything.
Fact: The name “comprehensive coverage” is understandably misleading. Some people think it covers anything and everything that could possibly happen to your vehicle. In actuality, it covers incidents not related to a collision with another vehicle, such as theft, vandalism, storm damage and animal collisions. Myth: Thieves target new vehicles. Fact: The market for parts from older cars is more lucrative than new cars. This means thieves looking to steal a car to sell the parts typically go for the older models. Comprehensive coverage is the best way to cover theft. If you are looking for an insurance agent in Dallas, contact us. Our agents can assist you with all of your insurance needs.