Insurance Misconceptions

Jun 16, 2020

Common Insurance Misconceptions

Office manager at You insurance agency here! I’m entering the world of insurance with fresh eyes. Just a few months ago, I was completely unfamiliar with the concept. Since then, I’ve gained knowledgeable insights about insurance I now feel passionate about sharing this knowledge with others my age who haven’t had much or any experience with finding coverage. It’s crucial to understand the importance of insurance, its benefits, what you’re paying for, and the coverage you need. I’m eager to empower other adults to make informed and confident decisions about their coverage. Below I have included facts to know about insurance when shopping.

What Is Full Coverage?

Many people believe that having “full coverage” means they are protected against all possible risks. However, “full coverage” typically refers to a combination of liability, comprehensive, and collision coverage, but it may not cover every possible scenario. There may still be limitations, deductibles, and exclusions. Most people shopping for coverage will seek full coverage for their everyday vehicles for personal use to be covered against possible claims. For instance, an insurance shopper would seek other coverage on a vehicle if the vehicle is used for business, for hire, or leisure like a collector’s car.

Basic On Auto

Auto insurance covers liability if you are at fault for the injury, and collision coverage pays for damages to your vehicle, personal injury, and medical coverage for you or someone else involved in the accident, uninsured or underinsured motorist protects you from being involved in an accident with someone who is not insured or a hit and run when the other party is unknown.

Credit Score and Insurance

In many cases, insurance companies consider an individual’s credit score when determining insurance premiums. Some people may need to realize the impact their credit history can have on the cost of their home or auto insurance. Maintaining good credit can help keep insurance rates lower. However, at You Insurance we do offer free quotes that don’t impact credit scores.

Published On: February 14th, 2024 / Categories: Blog, Insurance Facts / Tags: /