There are many insurance myths floating around, and most of them have been around for years. We want to respond to these myths with clear information, so that you can make educated decisions about your insurance purchases. CMI is here to help you better understand insurance and make educated decisions.

Myth

Having two agents is better because they keep each other competitive.

Having two agents duplicates effort and can create coverage gaps and/or duplications. For example, there is certain coverage that can be included under a liability policy as well as under an auto policy. If you have two agents, who coordinates coverage? One agent is better able to manage your entire insurance program.

Myth

The lowest premium is the best option.

Premiums are determined by a combination of exposures and coverage. If you select the lowest premium you may be missing needed coverage.  For example, the lower premium may not include replacement cost coverage on buildings and equipment.

Myth

The internet is a great place to get good insurance deals.

Low cost internet insurance may allow you to select the coverage and limits you think you need, but in most cases you end up with a limited and inadequate program.  Typically, you may only realize these limitations after you have an uninsured claim.

Myth

Flood insurance is only for people who live in a high risk area.

Flood insurance is defined as any ground water coming into your home from the outside.  Flooding can happen to just about anyone (unless you live on top of a mountain).

Myth

There isn’t anything I can do to manage my insurance costs except shop price.

There are many things you can do to reduce your premiums; here are a few:

• Consider increasing your deductibles
• Develop a safety program at your ministry site
• Consider the vehicle when make a purchase, some are more expensive to insure
• Add smoke and security alarms
• Ask us about the many different discounts offered

This entry was posted on February 19, 2014 at 12:41 am. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Posted in Uncategorized by Scott Stuart Comments Off on Top Insurance Myths