{"id":5081,"date":"2025-01-20T10:10:48","date_gmt":"2025-01-20T18:10:48","guid":{"rendered":"https:\/\/www.vernfonk.com\/blog\/?p=5081"},"modified":"2025-01-29T08:13:02","modified_gmt":"2025-01-29T16:13:02","slug":"insurance-myths-busted","status":"publish","type":"post","link":"https:\/\/www.vernfonk.com\/blog\/car-insurance\/insurance-myths-busted\/","title":{"rendered":"Insurance Myths Busted: What Your Uncle Joe Told You Isn’t True!"},"content":{"rendered":"\n

Well, well, well. Uncle Joe decided to roll up to Thanksgiving \u2014 all the way from Spokane, in fact. And guess what? He decided to get into an argument (diatribe? soliloquy?) after having to pay a ton of money out of pocket after he crashed his ’68 Mustang on 395 because he didn’t have enough auto insurance<\/a>. And here’s the thing: Uncle Joe, while a man of worldly wisdom in some respects, should stay in his lane (both literally and with respect to this topic) because he has no clue about how insurance actually works. <\/p>\n\n\n\n

We all have an Uncle Joe in our lives, and that’s why this guide will help you separate truth from fiction when it comes to insurance myths \u2014 whether that’s about auto or homeowners insurance<\/a>. <\/p>\n\n\n\n

Myth 1: Life Insurance Is Only for the Elderly<\/strong> <\/h2>\n\n\n\n

“Do you need life insurance? Nah, you’re too young!” Um, no, Uncle Joe. Life insurance isn’t only for the elderly. In fact, it’s often better to have a term or whole life policy when you’re younger <\/em>rather than older. Let’s think about it in simple terms. When you’re young, you typically don’t have as many assets, including real estate, equities, and bonds. Because of that, if you happen to meet an untimely demise sooner than later, any dependents in your life will be left in a more difficult financial situation. <\/p>\n\n\n\n

You also have to pay quite a bit more for your premiums as you get older. That’s because life insurance premiums scale exponentially with your age based on actuarial tables. Whether you opt for term or whole life coverage, you need this to protect your dependents while you’re young and healthy (unlike Uncle Joe, who is neither young nor healthy at this point \u2014 don’t buy into his life insurance myths). <\/p>\n\n\n\n

Myth 2: Health Insurance Isn’t Worth the Cost If You’re Healthy<\/strong> <\/h2>\n\n\n\n

This one almost begs belief. “Healthy” is a very short-term state of affairs. Everyone gets sick, and almost everyone is going to deal with at least one chronic condition during their lifetime. Uncle Joe, when he’s not pounding brewskis in the backyard (what else is there to do anyway after crashing that Mustang), might be trying to convince you that this isn’t worth it since you’re still young and healthy. <\/p>\n\n\n\n

Again, it protects you against catastrophic <\/em>outcomes. Let’s say you don’t have any health insurance whatsoever, and then you get into a car accident while going on a winery tour of Washington State with your “best friends.” The ambulance takes you to a hospital, which is obligated to provide emergency services to you by law. The only problem is that you have to pay out of pocket. And hospitals aren’t exactly known for charging low prices. So now you’re tens of thousands of dollars in the red, and you have no one to blame but Uncle Joe for some of the worst advice ever given. <\/p>\n\n\n\n

Myth 3: Home Insurance Covers All Natural Disasters<\/strong> <\/h2>\n\n\n\n

Yeah, no. Uncle Joe decided to build a beautiful home in one of Washington’s most notorious flood zones. He decided not to check the flood map provided by the FEMA Flood Map Service Center<\/a> (no surprise there when it comes to Uncle Joe \u2014 he’s not exactly known for his critical thinking skills). <\/p>\n\n\n\n

So, the answer is definitively “no.” Home insurance, by default, doesn’t necessarily cover every natural disaster known to mankind. Oftentimes, you might need to purchase additional protection from flooding, earthquakes, and other “acts of God” as they’re known in the business. <\/p>\n\n\n\n

Rather than trusting Uncle Joe with a matter like this, talk to your agent or consult the Home Insurance Decoder Ring<\/a> instead to see what makes sense based on your risk profile <\/em>rather than what Uncle Joe saw on Facebook the other day, alright? <\/p>\n\n\n

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Myth 4: Auto Insurance Prices Are Solely Based on Driving Records<\/strong> <\/h2>\n\n\n\n

Uncle Joe, the world’s “greatest” driver, loudly proclaims to you that the only thing that matters when it comes to saving money on your auto insurance premiums is your driving record. However, what affects car insurance rates goes far beyond how you drive.  <\/p>\n\n\n\n

Factors like your age, location, and even the type of car you drive play a significant role. And while your driving record might be squeaky clean, Uncle Joe’s high premiums aren’t solely the result of his terrible driving record\u2014or the ongoing myth, is it really more expensive to insure a red car<\/a>? <\/p>\n\n\n\n

More auto insurance myths busted, once again. A lot of other factors affect your auto premiums, including: <\/p>\n\n\n\n