Top Scary Assumptions about Insurance

Insurance Guide

Halloween can be a fun time; however, when insureds make assumptions regarding insurance plan, it usually is downright scary for the insurance broker. Listed below are three assumptions most people make concerning insurance which aren’t just wrong, they are terrifying!Scary Insurance Issues!

“Once I purchase a plan, I haven’t got to think about it again…”

Ahhhh!  As they say, the only thing constant is change.  Vehicles get replaced, commutes change, loans receive money off or added, additions and upgrades occur at homes, businesses switch to adapt to demand, exposures change as time passes with cyber liability and employer practices liability claims… other great tales and so on.  

Though insurance agents strive to locate the unknown, they do not have a crystal ball.  It can be nearly the insured to consider each insurance coverage not less than upon every renewal to make sure that coverage is really what they expect.  If you can’t understand something, get hold of your insurance professional because they can explain precisely what is or perhaps is not a part of your coverage.

“I have got a personal umbrella insurance protection, therefore i am covered for everything!”

Yikes! Personal umbrella insurance typically is an additional layer of liability insurance over personal insurance coverage, like home and auto insurance; however, it isn’t netting of protection over everything!

  • A personal umbrella will offer coverage over owned motorhomes and watercraft at the same time, but typically as long as listed in your local umbrella and now have separate underlying policies.  
  • All business activity is frequently excluded from a personal umbrella.
  • An umbrella policy was designed to offer an additional layer of liability protection if you’re found legally to blame for causing injury or property damage to anyone else outside your household.   It isn’t built to fill a coverage gap for say a completely new vehicle you purchased but forgot to use in your truck insurance policies, or it had become determined that the dwelling coverage in your home hasn’t been adequate to rebuild. 

Scary Insurance Issues

“I don’t really need to buy the insurance provided by the auto rental company after i rent – my policy will cover it.”

Oh-no!  Like many issues in insurance, this can be a gray area.  If renting in america alone and Canada, most motor insurance policies go through named insured on any car driven with permission- but only to the coverage maintained insured’s own car insurance.  Therefore when the named insured decides don’t carry collision coverage over a ten-year-old vehicle, there’ll be no collision coverage on the brand-new rental!

Even if you carry high liability limits and physical damage coverage on your own auto policy, the rental agreement is between you and the rental agency.  The rental company could include language inside contract you sign using them causing you to be answerable for loss-of-use fees, administrative fees and diminished value, among others.  Since usually are not typically element of your individual auto coverage, it would not typically extend to the rental agency either. 

One means of avoiding being terrified while waiting on your car rental agency counter is to find out beforehand what your own private auto policy covers while renting a car, precisely what it does not.  Some insurance providers offer additional coverage to fill many of these car rental gaps, however it’s not automatic, so ask first.  Your credit card company might also offer some protection so certainly worth a little research.

Insurance won’t have for being scary!  After a little time, you can use your local agent to ensure there are not any surprises that could give you a fright.  Happy Halloween!