The insurance industry is full of fast facts and compelling statistics. It seems like all the information you could ever need is right at your fingertips through a quick Google search — but when multiple sources say different things, how do you really know what’s true?
We’re here to help you see what’s fact and what’s fiction so you can confidently make decisions for your family’s financial future.
Let’s take a look at what gives away an insurance myth. Then we’ll address a few common misconceptions in life, home, and auto insurance so you can feel better about your coverage!
Tips to Spot an Insurance Myth
Here’s how to spot an insurance myth before you fall for it.
Evaluate the source of the claim
One of the first things to consider when presented with an insurance “fact” is who is giving you that information.
Are they qualified and knowledgeable about the insurance industry? As viral as social media posts can be, they usually don’t pass the test. Do they have a certain agenda in mind like trying to push you to work with one specific carrier? Be wary of any hard sells.
How often are you hearing the claim?
Just because you hear something frequently doesn’t mean it’s true. In fact, some of the most common myths are incredibly widespread! With that said: If you’ve only heard a claim from one single source, it’s worth looking around to see if anyone else verifies the information.
What evidence is there to support the claim?
In a field as complex and confusing as insurance, it can be difficult to find concrete evidence. Don’t give up entirely, though — if you’re questioning whether or not a certain claim is true, spend some time searching for relevant sources!
Can you find multiple third-party articles to validate what you’re hearing? Do any authors link to studies, surveys, or other data? At the very least, are they open about where their information came from?
Don’t dismiss your gut feelings
If you feel like something is too good to be true, there’s a strong chance it is. Don’t rely solely on your gut reactions — remember to think logically and look for data, too — but always investigate when your stomach feels a bit uneasy.
Common Life Insurance Myths
Of all the types of insurance coverage, life insurance might be the most complicated. Sometimes it’s tough to know what information you can trust — who really knows best when it comes to such a personal decision?
Let’s set the record straight by tackling some common misconceptions about life insurance policies. The following claims are all false!
- All life insurance is basically the same.
- Life insurance is unaffordable.
- Single people don’t need life insurance.
- Stay-at-home parents don’t need life insurance.
- Employer-provided life insurance is all you need.
- I can’t get life insurance because of my health conditions.
Common Home Insurance Myths
If you’re like most people, your house is the most expensive thing you own. When hundreds of thousands of dollars are at stake, it’s important to do everything you can to protect your investment!
A number of home insurance misconceptions cause confusion for new and experienced homeowners alike. Here are a few common false claims:
- Standard home insurance covers flooding.
- You don’t need flood insurance unless you live in a flood zone.
- Damage from mold is covered by standard home insurance.
- Homeowners insurance covers everything you own.
- Home insurance covers all injuries within your home.
- Your at-home business is covered by your home insurance policy.
- By law, you must have home insurance.
Common Auto Insurance Myths
With so many “facts” about auto insurance circulating today, it’s often hard to separate truth from fiction — but it could cost you to be wrong.
Let’s take a look at some of the most common car insurance misconceptions. The following statements are all myths!
- Car color affects insurance rates.
- One ticket will cause insurance rates to skyrocket.
- Car insurance rates automatically show a large increase after one claim.
- Car insurance follows the driver, not the car.
- Insurance premiums rise as you age.
Have Questions? Your Agent is Here For You
There’s no doubt about it: The world of insurance is confusing, messy, and sometimes downright misleading. That’s why we’re committed to not just getting you the coverage you need — but also helping you understand exactly what your policies look like.
Lindow Insurance offers free, no-obligation quotes to learn how much a new insurance policy might cost you. Most importantly, our compassionate hometown agents are here to walk you through any questions you may have along the way.