Regarding insurance, myths and misconceptions abound, often confusing people about their
coverage and costs. Believing these myths can lead to costly mistakes, leaving you
underinsured or paying more than necessary. To set the record straight, we’ve debunked 13
common insurance myths, ensuring you make informed decisions about your coverage. These
insights, approved by GEICO Morris Plains (973) 775-8850, will help you avoid pitfalls and get
the protection you need.
Myth: Red Cars Cost More to Insure
Fact: The color of your car does not affect your insurance premium. Insurance rates are
determined by the car’s make, model, age, engine size, and driving history, not its color.
Myth: Full Coverage Protects Against Everything
Fact: “Full coverage” usually includes liability, collision, and comprehensive insurance, but it
doesn’t cover all situations. For instance, it won’t cover personal belongings stolen from your car
or normal wear-and-tear damages.
Myth: Older Drivers Always Pay More
Fact: Older drivers with clean driving records often qualify for discounts and may pay less than
younger, riskier drivers. While age can influence premiums, it’s not the only factor insurers
consider.
Myth: Home Insurance Covers Floods
Fact: Standard homeowners’ insurance policies do not cover flood damage. You’ll need
separate flood insurance to protect your property, particularly if you live in a high-risk area.
Myth: Health Insurance Covers All Medical Expenses
Fact: Health insurance typically includes exclusions, deductibles, and copayments. Elective or
cosmetic procedures are often not covered unless deemed medically necessary.
Myth: Life Insurance Is Only for the Elderly
Fact: Life insurance is often cheaper and easier to obtain when you’re young and healthy.
Waiting until later in life could mean higher premiums or difficulty qualifying for coverage due to
health issues.
Myth: Comprehensive Car Insurance Covers Engine Failures
Fact: Comprehensive car insurance covers non-collision-related damages like theft, vandalism,
or weather events but does not cover mechanical breakdowns or wear-and-tear issues.
Myth: You Don’t Need Renters Insurance if You Rent
Fact: Your landlord’s insurance policy only covers the building itself. Renters insurance is
essential to protect your personal belongings and liability.
Myth: Skipping Small Claims Keeps Premiums Low
Fact: While avoiding frequent claims can help stabilize premiums, occasional small claims don’t
affect rates significantly. Insurers focus more on claim frequency than claim size.
Myth: If a Friend Crashes Your Car, Their Insurance Pays
Fact: Car insurance typically follows the car, not the driver. Your insurance policy will likely be
the primary coverage if a friend crashes your vehicle.
Myth: Life Insurance Is Too Expensive
Fact: Many life insurance policies, especially term life insurance, are highly affordable.
Coverage can cost less than a daily coffee habit, making it a cost-effective way to protect your
loved ones.
Myth: Single People Don’t Need Life Insurance
Fact: Life insurance isn’t just for families. Singles can use it to cover debts, funeral costs, or
leave a financial legacy for loved ones or charities.
Myth: Auto Insurance Covers Personal Items Stolen from Your Car
Fact: Personal belongings stolen from your car are typically not covered by auto insurance.
Renters’ or homeowners’ insurance is necessary to protect these items.
Expert Advice You Can Trust
Avoiding these common misconceptions ensures you’re properly covered without paying for
unnecessary extras. For more personalized advice and a full review of your insurance needs,
contact GEICO Morris Plains at (973) 775-8850. They’ll guide you through your options and
ensure you’re fully protected.
