The Top Ten Insurance Myths You Need to Know! on About.com is a good start for examining your current insurance coverages. They give a paragraph or two on each item with links for more details.
- Myth #1: Hey, Your Paying the Premiums…Insurance Should be Bought and Used for Every Accident and Disaster.
- Myth #2: If I am Alive, I must need Life Insurance!
- Myth #3: I’m the Breadwinner in the Home, So Only I Need Life Insurance.
- Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.
- Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.
- Myth #6: My Son Uses the Car for Delivering the Newspaper and His Pizza Delivery Job. He’s Not Self-Employed So Our Auto Insurance Will Cover Any Accidents.
- Myth#7: I Don’t Need Disability Insurance…If I Become Disabled Social Security Will Take Care of Me.
- Myth #8: If I Need to Stay in a Nursing Home When I am Older, The Government Will Pick Up the Bill.
- Myth #9: Umbrella Insurance Coverage is Just for Rich People.
- Myth #10: People Who Decide not to Purchase Health Insurance Don’t Effect Others.
Myth’s #1 and #6 are the ones I run into the most since I primarily deal with auto insurance. People feel that every scratch and ding should be turned in and then wonder why their rates are going up. #6 is the one that worries me the most with clients. You see the pizza guy driving around with that pizza sign probably has no insurance – even if he has insurance. If he does not have a ‘business’ policy – then his personal auto policy may not cover him while delivering pizza.
The problem gets real interesting with newspaper delivery. I swear no one delivers papers on foot or by bike any more. Mom gets up and drives the poor kids around the neighborhood. Guess what. That is business use. Bleary eyed and un-caffinated you hit something? Guess what. No coverage. Unless you lie. Then it is fraud.