April 1st is a day full of pranks and jokes, but when it comes to insurance, misinformation is no laughing matter. Many homeowners, renters, and drivers fall for common insurance myths that can leave them underinsured or paying more than necessary. Don’t get fooled! Let’s bust some of the biggest insurance misconceptions so you can make informed decisions about your coverage.
Myth #1: Home Insurance Covers All Types of Damage
Many homeowners believe their insurance policy covers everything, but that’s not the case. Standard home insurance typically does not cover flood or earthquake damage. If you live in an area prone to these risks, you may need additional coverage. When getting a homeowners insurance quote Albuquerque NM residents should review policy details carefully to ensure they’re fully protected.
Myth #2: Red Cars Cost More to Insure
This is one of the oldest auto insurance myths. Insurance companies don’t care about the color of your car—what matters is the make, model, year, engine size, and your driving record. If you’ve been hesitant to buy that red sports car because of this myth, rest assured that your insurance rate won’t be affected by the paint job.
Myth #3: Renters Insurance Isn’t Necessary If Your Landlord Has Insurance
Many renters believe their landlord’s insurance will cover their belongings in case of fire, theft, or other damages. However, a landlord’s policy only covers the structure of the building, not the tenant’s personal belongings. Renters insurance is an affordable way to protect personal property and provide liability coverage. ABQ Insurance can help renters find policies that fit their needs.
Myth #4: Minimum Auto Insurance Coverage Is Always Enough
While having minimum liability coverage may keep you legal on the road, it may not be enough to protect you financially after an accident. If you’re at fault in a crash and the damages exceed your policy limits, you’ll be responsible for paying the difference out of pocket. Comprehensive and collision coverage can provide additional protection, especially if you have a newer vehicle.
Myth #5: Home Insurance Covers All Personal Belongings at Full Value
Standard homeowners insurance policies have limits on high-value items like jewelry, artwork, and collectibles. If you own expensive valuables, you may need additional coverage, such as a scheduled personal property endorsement, to ensure full protection.
Myth #6: Insurance Follows the Driver, Not the Car
Many people assume that if they lend their car to a friend, their friend’s insurance will cover any damages in an accident. In reality, insurance typically follows the vehicle, meaning that the car owner’s policy is the primary coverage. Before lending your car to someone, it’s important to understand your policy’s terms.
Myth #7: Filing an Insurance Claim Will Always Increase Your Rates
Not every claim will result in higher premiums. Insurance companies consider factors such as fault, claim history, and the severity of the claim. In some cases, accident forgiveness programs may prevent rates from increasing after a minor incident.
Don’t Let These Myths Cost You
When it comes to insurance, knowledge is key. Understanding your policy and what it covers can save you from costly mistakes. Whether you need a homeowners insurance quote Albuquerque NM homeowner’s trust or guidance on auto and renters insurance, ABQ Insurance is here to help. Contact us today at 505-217-2100 to get the right coverage without falling for common myths!
