Insurance is something that most of us have to have, but few of us understand. We all know that it’s essential, and we all know that it can be a lifesaver, but beyond that, most of us need to learn more about insurance. This is unfortunate because understanding insurance is key to getting the most out of it.
There are myths and misconceptions about insurance coverage abound, and these can lead people to make poor decisions about their coverage. From health to homeowners to auto insurance, people believe all sorts of things that aren’t true.
Setting Records Straight: Insurance Myths And Facts
Let’s take a look at some of the most common myths about insurance coverage and set the record straight:
1. MYTH: Insurance Is Too Expensive.
Fact: The insurance cost is based on many factors, including the type of coverage you need and the amount of risk you pose. The more coverage you need, the more expensive your policy will be.
However, there are ways to save money on your premiums, such as by shopping around for the best rates or bundling your policies. For instance, when it comes to healthcare coverage, you may get a discount on your premiums if you’re willing to use in-network providers.
DMEs, or durable medical equipment providers, are contracted with specific insurance companies to provide care at a discounted rate. For instance, if you need to purchase hospital beds for home use, you can get a discount through your insurance company if you buy the beds from an in-network DME.
They are covered under Part B of Medicare and typically have a 20% co-insurance.
2. MYTH: I don’t need insurance because I’m healthy.
Fact: Everyone needs some insurance. Even if you’re young and healthy, you need health insurance in case of an accident or unexpected illness. And even if you don’t own a home, you need auto insurance.
Typical insurance coverage for young, healthy people is much less expensive than you might think. For instance, a healthy 30-year-old man can get health insurance for as little as $50 per month.
Having one can be your safety net in case something terrible happens.
3. MYTH: My insurance will cover anything that goes wrong.
Fact: There are some things that your insurance policy will not cover. For instance, most health insurance policies have a deductible, which you must pay out of pocket before your insurance coverage kicks in.
Additionally, most health insurance policies do not cover some types of care, such as cosmetic surgery or elective procedures. And, of course, if you have auto insurance, your policy will not cover damages you cause intentionally.
It’s essential to read your policy carefully to know what is and is not covered. That way, you can make sure you have the coverage you need.
4. MYTH: My employer’s insurance will cover me in case of an accident.
Fact: Your employer’s insurance will not cover you in the case of an accident; it will only cover your medical expenses related to a work-related injury.
If you’re in an accident that is not work-related, you will need to file a claim with your auto insurance policy. Similarly, if you’re injured in a non-work-related incident, you must file a claim with your health insurance policy.
5. MYTH: I don’t need insurance because I have credit cards/I can pay out of pocket.
Fact: Credit cards and cash may cover some of your expenses in the case of an accident or illness, but they will not cover all of them. Additionally, using your credit card or paying out of pocket for medical care can be very expensive.
For instance, a hospital stay can easily cost thousands of dollars, and most credit cards have limits on how much they will cover. Similarly, most people need more cash to pay for a significant medical procedure.
This is why insurance is so important; it can help you cover care costs that you would otherwise be unable to afford.
6. MYTH: I don’t need home insurance because I don’t own a home.
Fact: Just because you don’t own a home doesn’t mean you don’t need home insurance. If you’re a renter, you need renters insurance to protect your belongings in case of an accident or theft.
And even if you don’t live in a traditional home, you may still need home insurance. For instance, you must have mobile home insurance if you live in a mobile home.
No matter where you live, having some coverage for your belongings is essential.
7. MYTH: My car is old/I only drive it occasionally, so I don’t need auto insurance.
Fact: Everyone who drives a car needs to have auto insurance. Even if your vehicle is old or you only drive it occasionally, you’re still at risk of being in an accident or having your car stolen.
And if you are in an accident or your car is stolen and you don’t have insurance, you will be responsible for paying for all the damages yourself. This can easily cost thousands of dollars, which most people cannot afford to pay out of pocket.
Auto insurance is required by law in most states, so even if you don’t think you need it, you may still be necessary to have it.
8. MYTH: I don’t need life insurance because I’m young/I don’t have any dependents.
Fact: Everyone, regardless of age or whether or not they have dependents, can benefit from having life insurance.
Life insurance can help your loved ones cover your final expenses, such as your funeral and burial costs, in the event of your death. It can also help them with other financial obligations, such as outstanding debts or mortgage payments.
Additionally, life insurance can be used to leave a financial legacy for your loved ones.
9. MYTH: Travel insurance is a waste of money.
Fact: Travel insurance is not a waste of money; it is a crucial way to protect yourself financially while traveling.
You should always consider buying travel insurance if you’re planning a trip. This is especially true if traveling internationally, as your health insurance may not cover you abroad.
Travel insurance can help you cover the costs of medical care, evacuation, and lost or stolen belongings. It can also provide financial protection if your trip is canceled or interrupted.
Insurance is essential to have, even though it can sometimes be expensive. It is always better to be safe than sorry, and insurance can help you financially in an accident or emergency.
Don’t let insurance costs deter you from getting the coverage you need. There are many ways to save money on insurance, such as by shopping for the best rates or taking advantage of discounts.
And remember, the peace of mind that comes with knowing you’re covered is priceless.