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  • Writer's pictureMichael C Ramsey

The top 5 insurance myths

Insurance can be a tricky thing. After all, you have to be licensed to even sell it. Certainly there are things that we all think are true, but in the end we have wrong. Insurance isn’t one of those things you can afford to get wrong. We’ve assembled a list of common myths that you need to know the truth about. If any of these are news to you, it might be time to review your coverage.

Myth #1: If your car is totaled, your auto insurance company will pay off your car loan.

You have just been in a decent wreck. You are fine, and looking over your car. “My insurance company is going to total my car.” Your next thought might be about the hot, new ride you will purchase. Stop right there! Your next thought should be “Can I afford to pay off the rest of my loan?”

Your insurance company will only pay off your loan if you have Gap Coverage. Otherwise they will only pay the fair market value of your vehicle. Many people owe more on their car than it is worth. In this case they will still have money left to pay on their loan.

Myth #2: My credit score has no effect on my rates.

Have you missed a payment here and there? Did you have a youthful indiscretion that has haunted your credit score? It might be affecting your insurance premium too. Keeping up on your credit score is important for just about every adult decision you will make. Knowing what is on your report could mean lower rates on insurance.

Most states have a compilation that is called a credit-based-insurance- score. Insurance companies use this score to determine how likely you are to pay off your loan or pay on-time. We recommend using a service like Credit Karma to check your score for free and help you address any blemishes.

Myth #3: Getting insurance online is less expensive.

Doing just about everything got easier and cheaper with the invention of the internet. You can have a drone deliver your Amazon order now. Getting a quote on insurance in your pajamas at 11:00 PM, while convenient, it isn’t your best value.

An insurance agent with Global Green understands all of the pieces that go into getting you the right policy for the best price. Many people don’t have the right coverage where they need it. Do you know how much liability you need to cover your assets? How much of a deductible should you carry for your income level? These are answers our staff can help you in making a decision.

Myth #4: If a friend wrecks my car, it will go on their insurance.

Your friend needs to borrow you car. No problem, you two go way back. You know that they would never do anything irresponsible with your car. Anyway, they have their own insurance. WRONG! Car insurance follows the car, not the driver.

If another driver is involved in an accident in your vehicle, you are liable for the damages. This means your insurance will pay for the accident and your deductible will need to be met. This is not the time to wonder if you have the right coverage. A Global Green agent can make sure you are covered.

Myth #5: The color of the car I buy affects my premium.

You are shopping for a new car. The choice comes down to beige or fire engine red. Your insurance will not change based on the color of the car. Go ahead, get the red one. Just don’t let it affect your lead foot. Speeding tickets will affect your premium!

Call us today and we will look over your current insurance coverage and give you a quote for the right policy at the best price. (816) 690-2390

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