What Are The Biggest Misconception About The Insurance Industry?
For many people insurance is the most complex topic to understand easily. They just buy the insurance policies but they don’t know anything about the basic terms like premium plans, risk coverage, claims and many more. So there are tons of misconceptions about the insurance industry around the world.
In this write up we shall have a look on few misconceptions and what is the truth behind that.
· 30 Days Grace Period When An Insurance Policy Lapses — This is absolutely false, if an insurance company gives the cancellation date, you no longer have insurance past that date if the premium is not paid.
· Housing Insurance Cover Flood and Earthquake Claims — There is no insurance policy that provide flood and earthquake coverage. If you want to cover these risks factors then you need to purchase additional policies.
· Personal Auto Insurance Covers When You Use Your Vehicles For Commercial Purpose — If you are getting paid from the vehicles that is used for any service, then personal auto insurance does not cover you in case of any accidents.
· Auto Insurance Covers You, No Matter Which Car You Are Driving — Many people misunderstands this policy benefit, Auto Insurance is one for the vehicle NOT for the driver.
· New Vehicles Automatically Cover All Coverage’s Of Auto Insurance Policy — This is absolutely a misconception followed by many people, your vehicle will have the same risk coverage, until you notify your insurance advisor with changes.
· Auto Insurance Covers Physical Damage On Vehicle Extends To A Rental Truck — Auto insurance policy is only extended to rent private passenger vehicle not for all rented vehicles.
· Water Damage is covered in a House Owner Insurance Policy — Damage or repair caused by water varies in many factor, it depends on where the water comes from and what endorsement the policy covers.
· Home Owners Insurance Covers My Personal Property for Any Damage Caused — Personal property is limited for only certain types of damage. Basically covered issues are fire, windstorm, hail, explosion, civil commotion, weight of ice and many more.
· Personal Umbrella Policy Will Provide Coverage For Business — Only Business insurance policy covers business, not a personal umbrella policy.
· If Jewelry is stolen from the home, My Home owner policy will cover that risk — The rule behind the My Home Owner policy is if the jewelry is stolen from the home, this policy will only cover jewelry up to $1, 000.00.
· If someone else drives my car and cause an accident, their insurance will cover this damage — Vehicle insurance policy is only applicable for car not for the driver. The legal owner of the car has to handle the claim, not from the relatives or friends.
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