1. Seeing Red: So, you have always wanted to buy that cherry red car, though, you were worried that your insurance rates would go up because of it. Well I am here to tell you that you can go out and get that car of your dreams! The color of your car is not a factor considered in your insurance rates. It is a dirty little rumor started back in the 80′s because most sports cars came in the color red. The fact that they were sports cars is what triggered the increase in premiums, not the color.
2. Floods are covered: WRONG. Any run of the mill home owners insurance policy adamantly excludes flood coverage. This is an all to common myth that has sunk many a home owner. Please call your agent if you feel you may be at risk for a flood. YOU NEED TO BUY THIS COVERAGE SEPERATELY.
3. “Full Coverage”: When the average person says they have full coverage on their car, most of the time they assume that if they total their car, a brand new one will be waiting for them when they get home. WRONG. The average auto insurance policy will only cover you for the book value of your car, which for most people is a few thousand dollars less than the price to replace it with a brand new car. Luckily for you, most companies now offer an endorsement to auto policies that will give you a new car, BUT keep in mind that this extra coverage needs to be added, IT IS NOT INCLUDED on your current policy. Again, I will say this, call your agent to make sure you have this coverage before it’s too late.
Stay tuned for more myths to be busted later in the week…