|Written by Insurance Land||Posted October 28, 2014 at 12:09 pm|
Insure.com said it recently surveyed 2,000 adults, half women and half men, from all regions of the country, asking them whether 10 insurance-related statements were true or false. All the statements were false, according to the online insurance provider.
Below are 10 insurance myths, with the realities and comments provided by insure.com, and the gender breakdown of those who believe the myths are true.
Myth 1: I should buy insurance coverage for my house based on its real estate market value.
- 52% think it’s true (45% women, 55% men).
- Reality: Buy coverage based on a home’s cost to reconstruct (materials and labor).
Myth 2: Red cars cost more to insure because they get pulled over for speeding more.
- 46% think it’s true (52% women, 48% men).
- Reality: Car color doesn’t affect insurance rates.
Myth 3: If I cause a crash with extensive damages to others, my auto insurance company can cancel me immediately.
- 44% think it’s true (50% women, 50% men).
- Reality: If an insurer wants to drop a customer due to claims, it generally has to wait until the policy period is up.
Myth 4: Small cars are the cheapest to insure.
- 40% think it’s true (42% women, 58% men).
- Reality: Small and mid-size SUVs and minivans are generally the cheapest to insure. Small cars are not, often because they’re chosen by more inexperienced drivers who tend to make claims, and because passengers incur more expensive injury claims.
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.
- 36% think it’s true (42% women, 58% men).
- Reality: It’s just the opposite – the Affordable Care Act prohibits health insurers from basing rates on pre-existing conditions.
Read the rest of the article here: http://www.insurancejournal.com/news/national/2014/10/21/344167.htm