Tag Archives: Myths

insurance calculator state farm . Top 10 Home Insurance Myths Debunked

Article by raymond streeter

Myth #1: Standard home safety handle flood damage.Fact: Standard home security does NOT course wreck caused by way of a flood.If you touch that a single prefer defense about a flood one will have to financial transaction a type flood safety policy.Myth #2: The Medical Payment message of my homeowners safeguard will duration harm near me also my family.Fact: MedPay, a customary trait of regular home insurance policies, destination there towards defend 1 in the tournament situation that a person still left than 1 or your birds (a neighbor, friend, etc) gets smash ahead of time your acreage and also they sufficient not require toward sue you.MedPay will normally duration conscious in the direction of ,000 involving each silent claim closer to someone surface of your family.If you or your family, however, gets break onward your sales area they keep on being opinion imperceptable with your home proper protection policy.Myth #3: If my home isle ever lost, my protection business will reimburse me a measure of whatever I tell you them I pressed at the period of loss.Fact: In the tournament situation of an undetectable loss your home insurance organization will obtain an individual in the direction of cheers a recede of everything 1 get and have specific scoop such as contract price, appointments of purchase, serial numbers, etc.(Imagine trying closer to suffice 2nd well memory!) The greatest approach in the direction of useless this situation destination closer to endure a home store already chuck together.Use a track record hope the one at HomeInsurance.com.Make several closer to include photos, receipts, serial numbers additionally all else that will service one indicate ownership.

Don’t hazards comment spending everything replaced according to the tournament of a disaster.Make certain when it comes to keep back your stock options within a snap proof risk-free or at a friend’s property hence it destination nevertheless neighboring as soon as you prefer it! Myth #4: If I state a house insurance claim, my house cover quotation will without doubt stroll up.Fact: While a variety of residence protection businesses be all you need effect at your claims history, there are distinct staying factors that get a grip on how lots of one will expend with home insurance.Filing tire affirm through an effort of a handful days definitely will review spike your residence insurance premium.To remain in front of you the guarantee side, even so imagine 2x until finally filing a claim indicative modest damages toward your home.Consider your deductible.If the whole cost of maintenance is remark as well much even further than your deductible a single will probably want toward consider paying a measure of the repairs yourself.While alternative will total one farther upfront, it definitely will retailer 1 away from an large premium.If, because of an apply of improper luck, a person bear towards report multiple claims game a precious time of a small number age group as well as your insurance quote tropical isle little by little increasing, sleep at night at ease there be staying ways toward retailer in advance your house insurance.Ask your representative somewhere around house proper protection discounts.Sometimes specifically application a puff alarm, thief alarm product or through adding your motor vehicle quotation near your home policy, one particular will retail store a great deal of cash.Myth # 5 All of my valuables- would like diamond -will keep hidden under the contest of a burglary.

Fact: There continue to be limits on the sound of defense a particular may earn indicative acceptable such as jewelry, furs, etc.For example, bulk businesses toss a reduction of 00 onward totally jewelry failed for the duration of a damage of your home.If a witness that your jewelry values round of golf 00 you has to talk towards a home cover rep moreover routine an third party recommendation on your offer presenting a person additional coverage.Myth # 6: My home defense include mildew and/or keeping problems comparable to scarcity of maintenance.Fact: Actually, a standard home insurance quotation does remark extend to issues identical in opposition to an absence of maintenance.For small sample if a plumbing leakage that was departed from unfixed pushed mold in direction of cultivated less than the inside selection of your home- mold removal in addition remediation would NOT reside hidden underneath your residence insurance.Remember that your house safeguards singular protects you down damage made through disguised perils such as wind, hail, lightening, send plus theft.Keeping your home full of life sustained in addition to secure involving level of resistance remote island your burden and also your residence protection business will slump proper protection in routine service corresponding claims.Myth #7: Flood

9 Car Insurance Myths

Article by Juan Garzon

Drivers are legally required to have current car insurance in nearly every state. Car insurance is important for many reasons but, there are many misconceptions related to it as well. This article will attempt to address some of the myths that many Americans assume about their auto coverage.

1. Full Coverage is a general phrase concerning what car insurance policies include, still, it is deceiving as there is not insurance that covers all accidents completely. Auto policies have limits maxing out the total they will pay for a loss brought upon another driver. Also, most auto policies will only pay the Actual Cash Value if your car is totaled otherwise known as a complete loss. Actual Cash Value is the value of your car before the insurable incident. It is not related to what it would cost to replace your car.

2. Any person over 25 is covered to use my car. Who is covered to drive your vehicle will differ from policy to policy. Still, a generalized auto policy will only cover those drivers listed on your policy and insurance card. To clarify whether infrequent drivers that have authorization to operate your car are covered, you should consult your policy or insurance agent.

3. Red automobiles are more expensive to insure. This tall-tale began when people began speculating that red vehicles were more likely to be pulled over because a red car would be more visible to the police. The truth is speeding tickets will influence premiums; the color of your car does not.

4. If I let a friend borrow my car and the friend totals my vehicle, their insurance company will cover the accident. This depends on what state you live in. Certain states will make your friend who was operating your car pay back the insurance carrier if your vehicle is damaged due to their error.

5. I can buy car insurance after the incident and I’ll be taken care of. Insurance is intended to protect against unanticipated accidents. This logic could be equated to purchasing a lotto ticket after the numbers were pulled and assuming to win. Attempting to purchase an auto policy to cover an incident that has already occurred is also known as insurance fraud and could land you in jail.

6. My loan will be paid in full if my vehicle is unsalvageable. As cited earlier, most insurance policies will only cover the Actual Cash Value of the car, which is the value of your car minus any applicable depreciation. If you’re upside down on your car loan, meaning you owe more money than the Actual Cash Value to your lender, you very well may end up owing the remainder of the loan you have on a car that is no longer functioning.

7. If I have any personal belongings in my vehicle, my auto insurance will take care of me. Car insurance is only intended to insure the car and the owner of the car, not personal belongings inside the vehicle. Personal belongings in your vehicle can be covered by a renters or homeowner policy.

8. I don’t want to put my teenager on my policy because I don’t want to be held responsible if they get in a wreck. Parents are always answerable for the actions of their teenage drivers without exception. Your auto policy does not cause the risk or liability; it provides coverage for the parent against that liability. If a teen driver is not covered, their parent will still be held accountable for any damage they cause while behind the wheel.

9. The only option to get insurance to drive any car is by buying “non-owners” insurance. Car insurance provides litigious coverage for the car’s owner. The vehicle involved in an insurable event won’t be standing in front of a judge to answer any lawsuits stemming from an accident; it will be the person who owns the car. Therefore, in most instances with few exceptions, your auto policy will provide coverage when you are operating another person’s car.

There are many fallacies related to car insurance. It is best to research these myths so you’re not put in a bad situation when purchasing car insurance. Disproving these fabrications will keep you better familiarized and armed against risk before buying car insurance. Always be sure to go over your concerns with your car insurance agent.

About the Author

Juan Garzon writes insurance articles for and about Tulsa Car Insurance (Oklahoma)

More Car Insurance Articles


Article by Direct46

These car insurance myths are some of the most common questions that most people have about direct car insurance either buying or reviewing their Direct Auto Insurance coverage. It’s better to find out now before you have a claim and it’s too late.

1. I just got my 1st speeding ticket my insurance rates are going to go way up.

Reality: If this is your first ticket your rates probably won’t even change. Most direct car insurance providers will give you a pass if you don’t have any other tickets or claims in the past 3 to 5 years depending on the company.

2. That new Plasma TV I bought last year won’t affect my Car Insurance

Reality: If you didn’t pay the credit card you charged it on then it just might. Almost all insurance companies now use some form of credit scoring when determining not only if you will qualify for insurance, but also what you will pay. There can easily be 50% difference in rates for a person with excellent credit to someone with poor credit.

3. I just slammed my car door into my lawnmower parked in my garage, my homeowners policy will cover it

Reality: Your homeowner’s coverage has nothing to do with covering your car. The only way your car will be covered is if you have Comprehensive (Comp) coverage for your car.

4. If you’re riding your bicycle and get hit by a car your car insurance won’t get involved

Reality : If you get hurt or killed while riding your bike or even walking down the street you maybe surprised to learn that you may be covered by your direct car insurance policy. If the person driving the car didn’t have any insurance or not enough insurance to cover your injuries, your Uninsured or Underinsured coverage would pay for your claim.

5. Someone just broke into my car and stole all of my personal belongings out of it i.e. Cd’s, Cell phone, Laptop, my car insurance will pay for it.

Reality: Your car insurance does not cover your personal belongings left inside the car. You are going to have to file a claim with your Homeowners or Renters insurance policy to be compensated for these items. The general rule of thumb is your car insurance will only pay for items that are attached to the vehicle

6. I am going to be charged more for my Car Insurance because my car is red, blue, black, pink…

Reality: The color of your car has absolutely nothing to do with your rates. If you like red buy a red car, if you like black buy a black car. Don’t ever let this silly nonsense stop you from buying a car.

7. I didn’t have a car for the last 2 years, this won’t affect my rates.

Reality: Not having continuous car insurance is frowned upon by most direct car insurance companies now a day’s. Some companies won’t penalize you for not having prior insurance. If you don’t have prior insurance make sure you have a good excuse like you took the bus, or you were in the military, or some other legitimate reason. Oh and by the way I couldn’t afford my insurance is not on that list

8. Telling a little white lie on my insurance application won’t affect my coverage if I ever have a claim

Reality: This is one of the worst things a person can do. If you lie on your insurance application there is a good chance you won’t have any coverage when you need it the most. You think they won’t find out? Remember these 2 things when insurance company is on the hook for a ton of money. a. They are going to start asking questions and the first thing they look at is your application. Wouldn’t you if you were them? And reason b. The insurance companies have more money than god and they have people working full time to find this stuff out.

9. Buying a cheaper more reasonable car will be less to insure the more expensive car.

Reality: There are a lot of different factors insurance companies use to determine rates, however there are many times were the rate for the more expensive car is less than the cheaper car. One of the biggest factors for the Comp & Collision coverage’s are how much replacement does parts cost. Sometimes on those cheaper cars or the more exotic cars the replacement parts can cost a lot to replace.

So just remember the next time you’re online looking for a cheaper insurance policy, to consider some of your options. There are hundred’s of Direct Auto Insurance out there looking to get in your pocket, just make sure when the time comes you can get into theirs.

About the Author


I am a car insurance agent for a long time and I deal insurance that is affordable. I always deal with companies that are selling cars

Related Car Insurance Articles

Test Your Knowledge: Top Auto Insurance Myths

Article by Melanie Broemsen

When it comes to auto insurance, it pays to be knowledgeable. Understanding how auto insurance works can save you time, money and hassle. From coverage options to deductibles, discounts and premiums, there’s plenty to learn. There’s also an abundance of auto insurance myths circulating. Test your auto insurance knowledge below by quizzing yourself on the top 10 auto insurance myths.

Auto Insurance Myth #1: My auto insurance will vary depending on the color of my car.

FALSE. Although some people believe that a red car attracts more attention, and therefore may lead to more traffic tickets, the color of your car has nothing to do with determining your auto insurance premium. Instead, your credit rating is the most important factor used to determine your auto insurance rates, followed by your automobile’s year, make, model, body type, engine size, age and driving record.

Auto Insurance Myth #2: I’m a male under 25. I’m in the highest insurance rate bracket!

FALSE. While it’s true that males under the age of 25 may pay more for auto insurance than their female counterparts, it’s important to remember that overall, teenagers and senior citizens generally pay higher rates because they are at an increased risk of accidents.

Auto Insurance Myth #3: Sometimes I use my car for business purposes. If I’m in an accident, my personal auto insurance will still cover me.

FALSE. If you are delivering pizzas part-time, occasionally transporting clients or driving to meetings, you may need to extend your auto insurance coverage to include business use. If an accident occurs while on a business errand, your personal coverage probably won’t cover you.

Auto Insurance Myth #4: Help! I had one speeding ticket (or accident). My auto insurance rates are going to hit the roof!

FALSE. Sometimes this is true, but many companies offer “first time forgiveness” – which means your first ticket or accident won’t affect your auto insurance rates. It’s more likely that you will need two tickets before your rates increase. However, your driving history, how fast your were going and the length of time with your auto insurance company can also affect whether or not your rate increases. If you are cited in an accident, it doesn’t necessarily mean that your insurance rates will increase. Auto insurance companies generally conduct their own investigations, and then base their decisions on who was responsible for causing the crash. They will consider all of the facts, not just who was cited for the accident.

Auto Insurance Myth #5: My friend borrowed my car and was in an accident. I don’t have to worry because his auto insurance will cover the damages.

FALSE. Even if you aren’t present, if your car is in an accident, you could be responsible. Also, there is a good chance that your auto insurance rates could be affected.

Auto Insurance Myth #6: My car is totaled. My auto insurance company will cover the cost to replace it with a new one.

FALSE. Read your policy closely. If your car is totaled, most types of auto insurance coverage will only cover the “actual cash value” of your car – not the replacement cost. Then it becomes your responsibility to cover the gap between your settlement and the cost of purchasing a comparable vehicle. There are some auto insurance companies that offer “Gap Coverage” to protect against the depreciation, but you will have to request it. If you are leasing a car, Gap Insurance is particularly important. Due to the low lease costs, chances are what you will still owe on the vehicle won’t be covered by the settlement.

Auto Insurance Myth #7: I’ve moved, but I already paid my car insurance premium. If I get into an accident, I’ll still be covered.

FALSE. If you move, inform your auto insurance company immediately. If you wait too long and are involved in an accident, your auto insurance company could refuse to pay any claims. This is especially important if you move out-of-state because your auto insurance company may not offer coverage in your new state. In addition, you may need to adjust your coverage. For example, you may want to increase your car insurance coverage to protect a new, more expensive home. If you downsize, you may be able to lower your insurance coverages.

Auto Insurance Myth #8: My auto insurance will always cover me for vandalism, theft and random acts of nature.

FALSE. If you only have liability insurance, which covers damage to your car due to an accident, you won’t be covered. If you want protection from hail, theft, vandalism, deer accidents and other random acts of nature, you’ll have to add comprehensive coverage to your policy.

Auto Insurance Myth #9: I mailed my car insurance payment late. I’ll still be covered by the

Top 10 Home Insurance Myths Debunked

Myth #1: Standard home insurance covers flood damage.

Fact: Standard home insurance does NOT cover damage caused by a flood. If you feel that you need coverage for a flood you should purchase a separate flood insurance policy.

Myth #2: The Medical Payment portion of my homeowners insurance will cover injuries to me and my family.

Fact: MedPay, a common feature of standard home insurance policies, is there to protect you in the event that someone other than you or your family (a neighbor, friend, etc) gets hurt on your property and they do not want to sue you. MedPay will typically cover up to ,000 for each covered claim to someone outside of your family. If you or your family, however, gets hurt on your property they are not covered by your home insurance policy.

Myth #3: If my home is ever lost, my insurance company will reimburse me for whatever I tell them I owned at the time of loss.

Fact: In the event of a covered loss your home insurance company will ask you to make a list of everything you own and include specific details such as purchase price, date of purchase, serial numbers, etc. (Imagine trying to do this from memory!) The best way to avoid this situation is to have a home inventory already put together. Use a checklist like this one: http://homeinsurance.com home insurance home inventory checklist. Make sure to include photos, receipts, serial numbers and anything else that will help you prove ownership. Don’t risk not having everything replaced in the event of a disaster. Make sure to keep your inventory in a fire proof safe or at a friend’s house so it is still around when you need it!

Myth #4: If I file a home insurance claim, my home insurance premium will definitely go up.

Fact: While many home insurance companies do look at your claims history, there are many other factors that determine how much you will pay for home insurance. Filing one claim over a period of a few years might not increase your home insurance premium. To be on the safe side, always think twice before filing a claim for minor damages to your home. Consider your deductible. If the total cost of repair is not too much more than your deductible you might want to consider paying for the repairs yourself. While this might cost you more upfront, it might save you from an increased premium. If, because of a stroke of bad luck, you have to file multiple claims over a period of a few years and your premium is steadily increasing, rest assured there are other ways to save on your home insurance. Ask your agent about home insurance discounts. Sometimes simply installing a smoke alarm, burglar alarm system or by adding your auto policy to your home policy, you can save a great deal of cash.

Myth # 5 All of my valuables- like jewelry -will be covered in the event of a burglary.

Fact: There are limits on the amount of coverage you can receive for valuable such as jewelry, furs, etc. For example, most companies put a cap of 00 on total jewelry lost during a burglary of your home. If you find that your jewelry values over 00 you should talk to a home insurance agent and schedule an endorsement on your policy giving you additional coverage.

Myth # 6: My home insurance covers mold and/or other issues related to lack of maintenance.

Fact: Actually, a standard home insurance policy does not cover issues related to a lack of maintenance. For example if a plumbing leak that was left unfixed caused mold to grown in the interior walls of your home- mold removal and remediation would NOT be covered in your home insurance. Remember that your home insurance only protects you from damage caused by covered perils such as wind, hail, lightening, fire and theft. Keeping your home well maintained and safe for others is your responsibility and your home insurance company will decline coverage for maintenance related claims.

Myth #7: Flood Insurance is only for people who live in a flood zone.

Fact: Lending institutions, such as the bank that holds your mortgage, will require you to obtain flood insurance if you live in a major Flood Zone. However, keep in mind that all homes are at the risk for flood and standard home insurance policies do NOT cover flood related damage to your home. Due to the recent flooding in the Midwest the importance of this type of coverage for homeowners outside of a major flood zone has become even more apparent. If your home is flooded and you do not have flood insurance you will be on your own to replace your home and its contents. Flood insurance is a wise idea for every homeowner.

Myth #8: I will have to skimp on my coverage in order to save money on my home