Most people would agree that understanding the full scope of the insurance industry is no easy task. That could be why there are so many misconceptions and outright fiction about an important industry we all rely on.
Some of the most common misconception look something like this:
Your home insurance should remain the same as when you purchased your home. This is where understanding the difference in Market Value and Replacement Cost comes into play. While homeowner’s insurance is part of buying a home and is needed, it is very different from how you insure your home. Market value is key when buying a home, but when buying home insurance, your focus must be on how much it would cost to rebuild your home, not just be reimbursed for what you paid for it.
When you turn 25, your insurance rates will drop. Fortunately, the insurance industry views age 25 as a step up from that of a teenage or young driver, but it does not reward you on your 25th birthday with lower insurance rates. However, as you get older, you might start seeing lower rates which goes with years of being a good driver.
Don’t worry if your auto insurance policy is cancelled. First, letting your auto insurance lapse is against the law. You might even be turned down by your insurance company if you let your insurance lapse. When you do get your insurance renewed, it will likely cost you more due to the lapse. It’s an advantage if you have continuous coverage for at least six months.
If I have full coverage, then everything is covered. Full coverage means your insurance policy is covering the vehicle you own if you have comprehensive and collision added to your policy. Full coverage allows you to pay your deductible and get your car fixed after being damaged due to a covered loss. On the other hand, if you have only liability coverage, your policy does not cover repairs to your vehicle.
Every insurance company offers the same insurance policies. This is perhaps the biggest misconception of all. This statement is total fiction. Just as there are differences in any other product you buy, the same holds true for insurance companies. Perhaps the single greatest differentiator is trust.
The trust factor is where an independent insurance agency can make the difference for reliability, for lower rates, and for the guidance you want from your insurance company. An independent agency offers you the advantage of finding the very best insurer for your insurance needs. At Killebrew Insurance we shop around, do the legwork for you, get to know you, and stand by ready and eager to answer questions and make needed changes when you call.
While the type of coverage on your policy may be the same as other agencies, you can trust that the valued experience you get with an independent agency such as Killebrew is quality at its best.