There are a variety of myths and misinterpretations about insurance. Understanding your insurance policy, your coverage, and your rate can be daunting, but it’s crucial in making sure you’re properly covered when you need it most. Every day, our insurance advisors speak to customers and help them understand the ins and outs of home and auto insurance. Today, we’re addressing some of the most common myths, misconceptions, and assumptions we hear from our customers, to help you make the right decisions on insurance in the future. Call a trusted associate today if you have any concerns because of these myths.

  1. No-Claim Means No Premium Increase: While a no-claim history can lead to discounts, it doesn’t guarantee your premium won’t increase. Other factors, like industry trends and overall risk, can influence rates.
  2. All Claims Increase Premiums: Not all claims result in premium hikes. Some claims, especially those not caused by your actions (e.g., weather-related incidents), may have a smaller impact.
  3. Filing a Claim for Everything is Wise: Small claims near your deductible may not be worth filing. Consider the long-term impact on your premiums and weigh the cost of repairs against potential increases.
  4. Premiums Only Based on Claims History: Insurers consider various factors when determining premiums, including your credit score, location, and the type of coverage you need.
  5. Claim Denials Don’t Affect Premiums: Even if a claim is denied, it might still be noted in your claims history, potentially affecting future premiums.
  6. Switching Insurers Erases Claim History: Some claims history might follow you when you switch insurers, as it’s part of your comprehensive insurance record.
  7. Not At Fault Means No Impact: Even if you’re not at fault in an accident, filing a claim can still impact your premium. Some insurers consider the frequency of claims, regardless of fault.
  8. Home Insurance Covers All Damages: Home insurance might not cover certain types of damage, such as those resulting from poor maintenance. Understanding your policy is crucial to avoid surprises during a claim.

Insurance can be confusing, but The Major Agency is here to help answer your questions and make sure you have the right coverage at the best rate. Get a personalized quote from our network of A-rated carriers. Call us NOW 470 641 1304…