Wednesday, July 5, 2017

15 Common Insurance Misconceptions

As with every other industry, insurance comes with many different misconceptions. Insurance policies aren't just black and white or one size fits all; they're different for each person and their unique situation. Below are some common misconceptions in regards to auto, home and life insurance. It is important to go over each of these policies with your Lake of the Ozarks insurance agent to make sure you're not falling victim to this misinformation.

Auto Insurance


1. "Full Coverage" Covers Any Circumstance - "Full Coverage" is a frequently used term, but is not an actual type of coverage. So while you may have liability, collision and comprehensive protection, your policy may be lacking in other areas, such as uninsured motorist protection or reimbursement for emergency roadside assistance or rental cars.

2. You're Covered No Matter What Car You're Driving - Automobile insurance is on the actual vehicle, not on the person driving it. And not all coverage fully covers bodily injury, so be sure to speak to your agent to ensure your insurance covers injury expenses for both you and other persons involved.

3. New Vehicles Automatically Get Full Coverage - Your new vehicle will have the same amount of coverage as your last unless you notify your insurance provider that you would like to increase your coverage. Keep in mind, that if you have financing for your vehicle, most lenders require you to carry full coverage while you have that loan with them.

4. Personal Auto Insurance Covers Paid Deliveries - If you are getting paid to make deliveries of any kind, say pizza deliveries, your personal auto insurance does not cover you in the case of an accident. If you regularly operate your personal vehicle for job-related reasons, such as to make deliveries, haul supplies or meet with clients, you may need separate commercial auto insurance.

5. Physical Damage Coverage is Extended to Rental Vehicles - The truth is that physical damage coverage only extends to rented private passenger vehicles. Rental trucks and motorhomes are not covered.

6. Comprehensive Insurance Covers Mechanical Problems - Comprehensive coverage pays for damage to your car that is not the result of a car accident. This includes such things as theft, vandalism, hail, fire and flood, but trouble with your transmission is on you.

Homeowners Insurance


1. Floods and Earthquakes are Covered - The truth is that basic homeowners insurance typically does not cover disasters such as floods and earthquakes. In order to have coverage for a flood or earthquake, you need to purchase additional insurance.

2. Replacement Cost is the Same as Market Value - Replacement cost should represent the amount it would take to rebuild your home. That number could be very different from the amount you could sell it for or what it assess at for tax purposes.

3. Water Damage is Always Covered - Repair of damage caused by water varies on different policies. Your coverage will depend on where the water comes from and what endorsement the policy has. If the damage is a product of neglect, you could be responsible for paying out-of-pocket for those expenses.

4. Personal Property is Covered for Any Type of Damage - Personal property is only covered for certain types of damage or losses and certain property will have limited theft coverage. Typical covered losses are fire, lightning, windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice, snow, sleet and freezing.

5. Stolen Jewelry will be Replaced - A basic homeowners policy will only cover jewelry up to $1,000 when the item is stolen. To ensure that jewelry is covered in the event of a loss, it's a good idea to provide a home inventory list and pictures to your insurance provider to keep on file.

Life Insurance


1. Single People with No Dependents Don't Need Life Insurance - Even if you're single, you need enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with.

2. Coverage Only Needs to Be Twice Your Salary - The amount of life insurance each person needs, depends on each person's specific situation. In addition to medical and funeral bills, you may need to pay off debts such as mortgage and provide for your family for several years.

3. Term Life Insurance Coverage at Work is Sufficient - For a single person of modest means, employer-paid or provided term coverage may actually be enough. However, if you have a spouse or other dependents, or know that you will need coverage upon your death to pay estate taxes, then additional coverage may be necessary.

4. Only the Money Makers Need Life Insurance - The cost of replacing the services formerly provided by a deceased homemaker can be higher than you may think. Depending on the number of children, the cost of daycare can be quite high. You'll also need to factor in the costs for cleaning, cooking, etc.

Insure the Lake can take care of all your insurance needs. From personal and business to home and auto, our insurance company at the Lake of the Ozarks can make sure you're protected in each aspect of your life. Contact us today at 573-348-2794 with any questions you may have about your insurance coverage!

Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 



About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.





Steve Naught, CIC

NAUGHT-NAUGHT AGENCY
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral

T: 573-348-2794
F: 573-348-0191


stnaught@naught-naught.com

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