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Debunking the Most Common Myths about Insurance – Part 1

22 Jun by 5280 Insurance

Insurance has a lot of technicalities and regulations, and it can be challenging to grasp the basics, especially if you’ve never had to deal with insurance before. The first time you attempt to buy insurance can be overwhelming and confusing.

However, if you have a plan and set up an appointment with your insurance agent, you will find the process a lot easier. In Part 1 of this article, let’s debunk five of the ten common myths about insurance:

Myth #1: Getting Insurance Is Expensive

Most people believe that insurance is one of the most expensive things they will have to buy. However, this is not the case. Although this is a high number, it is not that expensive.

The average car insurance cost in 2018 was roughly $1,190. Premiums increased by 30 percent between 2014 and 2018, even though the number of insured vehicles increased by only 7 percent.

Furthermore, the average yearly cost of car insurance for new vehicles was $1,202 in 2020, roughly a budget of $100 per month for vehicle insurance when buying a new automobile.

If you plan your finances well, you will be able to make insurance payments manageable. It’s crucial to analyze the costs and benefits of different insurance policies and make an educated decision.

Myth #2: Getting Insurance Takes Long

Getting car insurance, health insurance, or home insurance is very simple. If you have a plan in place, you can go to your local insurance agent, tell them what you want to get insured for, and leave with a policy.

If you set up an appointment with your insurance agent or broker, you will find that the process is much shorter. You can also prepare yourself by getting a list of the types of insurance you will need and the prices of each. This gives your insurance agent an idea of what coverage you need.

Myth #3: There Are Only a Certain Amount of Insurance Policies Available

When you’re looking for insurance, you will be surprised by the number of available types of insurance. You can practically have anything, and everything insured, from your car and home to your life and even your pets.

Today, there are several types of insurance policies available. It’s essential to look at each type of policy, its features, and its costs to get the cheapest insurance that is right for you.

The more policies of insurance you buy, the more money you can save. However, it is crucial to spend your money wisely and be informed about what you are buying.

Myth #4: If You Cannot Pay Your Insurance, You Can Get Covered

Most people believe that what happens if they cannot pay their insurance. However, insurance companies will not cover you no matter what happens.

If you do not pay your insurance premiums, the policy will lapse, and you will no longer be covered. The insurance company will not cover you and will use the premiums you have paid in the past to set up a reserve fund that can be used to pay your claims.

Myth #5: There Is a Fixed Number of Claims You Can Make

A common myth is that there are a fixed number of claims you can make. Insurance companies will see this as a break to reduce claims and premiums by raising your policy’s deductible.

Typically, the deductible is set at a high enough level to prevent you from making a claim or two. This is a great way to save money on premiums.

However, if you want to make a claim, you should be aware that you can make as many claims as you want. Without a deductible set, your premium will go up by a lot.

Conclusion

People of all ages need insurance. This can be car insurance, home insurance, or even health insurance. Anyone can find a use for a safety net, which is why it is crucial to take advantage of insurance benefits and invest in the proper insurance plan.

In other words, knowing, applying, and using insurance is not as hard as you think. Once you analyze the costs and benefits of different policies, you can easily find the right insurance you need. 

Are you in search of an insurance company in Englewood? Look no further than 5280 Insurance. We commit to providing you and your family with protection and peace of mind for everything you need to cover and those things you didn’t realize you needed. Contact us now to determine the best coverage for your specific requirements. 

Don’t miss Part 2 of this article which further debunks five more myths about insurance.

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