Houston Texas Insurance Agency Blog

Insurance Myths – Houses, Red Cars, and Big Crashes

Written by Linda Kay | Mon, Nov 10, 2014

Who knows how myths get started?  One thing for sure, the more you hear them the more likely you are to believe those untruths.  In a recent survey, Insure.com found some interesting results as reported by Amy Danise in her article Biggest Insurance Myths Involve Houses, Red Cars, and Big Crashes. 

“Any confusion over what to buy or how to use a product can end up being costly, but when it comes to insurance, misunderstandings can end up costing thousands of dollars.”

“We set out to find the worst sources of confusion, based on 10 common insurance myths. Insure.com asked 2,000 adults whether 10 statements were true or false. All the statements were false. We also looked at who believes each myth more – women or men.  In all cases except one, men were more likely to be duped by an insurance myth.

Coming in as the top myth: Over half of people surveyed (52 percent) don’t know how to buy insurance for a house.”  Click here for the Insure.com article.

What were the 10 myths?  We thought we would share them below.

Myth 1: "I should buy insurance coverage for my house based on its real estate market value"

Myth 2: "Red cars cost more to insure"

Myth 3: "If I cause a crash with extensive damage to others, my auto insurance company can cancel me immediately"

Myth 4: "Small cars are the cheapest to insure"

Myth 5: "The Affordable Care Act (also called Obamacare) allows health insurance companies to base rates on medical conditions such as high blood pressure, heart disease and cancer"

Myth 6: "Comprehensive auto insurance covers everything and anything"

Myth 7: "Thieves prefer to steal new cars"

Myth 8: "If my friend borrows my car and crashes it, their insurance will pay for damage"

Myth 9: "The Affordable Care Act requires me to take the health insurance plan offered by my employer"

Myth 10: "Out-of-state speeding tickets can't follow you home"

At Dean & Draper, we’re all about demystifying insurance.  We welcome your insurance questions.  Contact Us 

Dean & Draper is a Trusted Choice insurance agency representing over 200 insurance companies. For over 34 years we have offered a trusted freedom of choice to our clients.  Contact Us.