4 Common Insurance Myths

A healthy dose of skepticism can be a good thing, except when it’s unfounded — and then it can end up costing you, especially when it comes to insurance. Ready to get educated? We bust four common insurance myths about life insurance, auto insurance, business coverage and homeowners insurance.

1. I’m Too Young to Need Life Insurance

   There are many reasons people think they don’t need life insurance. Sometimes it’s because they have coverage through work or because they don’t have kids. But the most common reason people believe they don’t need life insurance is age. Young and healthy? That’s great! It’s also the perfect time to get life insurance because you benefit from lower rates, ensuring you have the coverage you need for the long haul. Discover all the life insurance myths you shouldn’t believe.

2. Auto Insurance Won’t Cover Me if I Cause an Accident

   This common car insurance myth stems from a lack of understanding about the general types of auto insurance. Auto policies can be combined in many ways to provide a unique fit for your driving needs. These three types of car insurance are just a few of your options:

   • Liability Insurance. Required by law in most states, liability car insurance helps you pay for damage resulting from an accident you were responsible for. The bodily coverage aspect of liability insurance covers some of the injuries inflicted on the other party. The property coverage piece of liability insurance typically covers damage inflicted on the other car involved.
   • Collision Insurance. This covers damage that you, the driver, caused to your own car in an accident. Collisions typically don’t cover non-driving related incidents like theft, flooding, vandalism and so on.
   • Comprehensive Insurance. This helps cover costs that collision insurance doesn’t. Comprehensive insurance can be useful if a car is stolen, ruined in a fire or damaged by an animal.

   Some car insurance plans offer wide-ranging add-ons, including rental cars, personal injury protection, flood damage and theft. Other auto insurance policies may only cover damages you inflicted on the other party involved. If you aren’t sure about the details of your policy, ask your Farm Bureau agent to walk you through the fine print so you understand your particular coverage.

3. Homeowners Insurance Always Protects My Valuables

   If you have homeowners insurance, don’t assume that your heirloom jewelry carries the same protection as your couch. Limitations may apply, especially to high-value items. And in fact, things that you consider part of your home may not actually be covered, such as a detached property, jewelry or collectibles. Even circumstances like mold or a flood might not be covered. Your Farm Bureau agent will be able to discuss the details of what’s covered — and what’s not — under your homeowners policy.

4. I Work from Home, So I Don’t Need Business Coverage, Just a Homeowners Policy

   Your typical homeowners policy will protect you if your home is damaged, but it won’t cover your home-based business completely. What if someone is injured on your property? What if you use your car for your business? What if you’re traveling for work? If you have a home-based business, you’ll need to consider these common small business insurance myths to ensure you’re adequately covered.

Insurance Myths Debunked

Your local Farm Bureau agent can give you the facts on all of the insurance products we provide. Contact us today!