The Biggest Misconceptions About Insurance

Insurance is present in every aspect of our lives.

13:26 24 February 2020

From home insurance, to job insurance, to car insurance, you simply cannot run from it. It’s interesting to note that even though insurance is everywhere, there are common misconceptions about insurance and some things people believe that are not true. It is important that you understand what your insurance covers and does not cover so that if you are ever put in a situation that requires it, you know what is expected. Here are some common misconceptions about insurance:

I Don’t Need Insurance for A Short Rental

If you are renting a van for a short period of time, you need insurance and coverage in case anything happens while you are driving in that vehicle. Most people think that if they have car insurance, it will cover any vehicle that they drive. Insurance only applies to the vehicle you purchased it for, therefore if you have several vehicles, you will need several different insurance policies to cover each one. If you are renting a van for a single job and get involved in an accident, you will be in a lot of financial trouble if you do not have insurance for it. There are many short term and temporary insurance policies offered by companies to help with situations like this. While most policies last a year or longer, temporary insurance lasts for a much shorter time and the terms of the insurance can be negotiated to give you protection for the time you need it for. Therefore, there is no excuse for driving a van without insurance even if you will only be driving it for a week or two. Not only is this ill advised, but it is also illegal. While many people do not think they need insurance for a short rental, this is simply not true.

All Insurance Companies Offer the Same Policies

When choosing an insurance company to go with, it is important to consider what you need in your insurance and the premiums that you are offered. Many people assume that all companies will offer the same policies for the same premiums and therefore it does not matter which company they choose. This is another huge misconception as just like any business, an insurance company wants you to pick them instead of the other company. Therefore, these companies will offer deals on their premiums in an attempt to win you over. Taking the time to visit multiple companies and get quotes on their premiums and coverage can help you negotiate, as you can use all the information you have gained to make a company offer you a better premium. If you do not take the time to look at policies, you might find yourself stuck in an extended contract paying an extreme amount of money for coverage that you do not need. Not all insurance companies offer the same policies, so figure out what you need and who will offer you the best deal for it.

It is OK to Not Have Insurance

Many people think that if they are switching over insurance companies or if there is a small period of time where they are not covered that everything is okay. This is a massive misconception, as driving a car without any form of liability insurance is highly illegal and if you are caught, you can have your license suspended and pay quite a hefty fine. Liability insurance helps to cover the other driver in the case of an accident and is the basic requirement for anyone looking to drive their car. While you might think driving for three days without insurance is fine, in the small chance you are involved in an accident during that time period there will be severe consequences. Always make sure that you are ensured for driving and leave the car at home if you are not. Do not risk your ability to ever drive again for one day of convenience.

Insurance requires annual and monthly payments and is mandatory in our lives, therefore it is important that you fully understand your policies and you have no misconceptions about them. Know that at no point should you be driving without any insurance and even if you are driving a rental or a temporary vehicle, it needs to be insured. Temporary insurance policies exist and are there to help you out in times like this. Finally, knowing that insurance companies offer different policies can go a long way towards saving money and getting you the coverage that you need. Stay informed about insurance and get the right policy for you.