MYTH - Insurance companies send drones to spy on your house for inspections.
TRUTH - Insurance companies use Google. It's free! They don't have the resources, or the money, to send drones over the millions of homes they insure. Google Earth has publicly available satellite imagery, where they can easily find the information they need. If anything is outdated or incorrect, you can send in pictures of your own to show otherwise.
MYTH - Red cars are more expensive to insure.
TRUTH - There are many misconceptions about what makes up the cost of your auto policy. Your driving record, years of driving experience, and annual miles driven account for much of your premium. Every insurance company also has different ratings for individual car models. Older cars are not necessarily cheaper, either. Theft is significantly up for older cars. California rate increases will also impact all policyholders. There were no rate increases allowed between April 2020 and January 2023, and now rates are spiking as insurers are getting approvals for rate increases again.
MYTH - Magical changes to auto policies - 1) My auto dealer added my new car to my policy. 2) I made changes to my auto policy online.
TRUTH - 1) When you buy a new car, your dealer may ask for proof of coverage, but they do NOT add the new car to your policy. 2) Recently, a client changed their address online, but that did not change the garaging address on their policy, only their mailing address. In both these cases, you need to ask your agent in writing (email us here: Service@AliveInsurance.com), to update your policy with a new vehicle or a new address, or to make other changes to your policy, such as selling a vehicle, or adding or removing a driver. FYI, some carriers require that you add permitted drivers to your policy before they are fully licensed.
MYTH - If your tree falls on your neighbor's house, your insurance company will pay for it.
TRUTH - It's not your fault if a windstorm causes your tree to fall. Your neighbor will have to file a claim with their own insurance company.
MYTH - It's the insurance company's fault that we are in an insurance crisis.
TRUTH - The Department of Insurance and the Insurance Commissioner dragged their feet for years after being asked to make meaningful changes to avoid a meltdown. Read our past articles in our blog explaining the very complex issues driving this chaotic market.
MYTH - You only need the state minimum auto liability requirements.
TRUTH - You are indeed required to have state minimum auto liability requirements of $15k/$30k/$5k, but if you have an at-fault accident where the damages are higher, you will be out of pocket for the rest. The $15k/$30k minimum for Uninsured Motorists is also problematic, as 7 out of 10 drivers are uninsured or underinsured. If you are hit by an underinsured or uninsured driver, you settle with your own insurance company. Therefore, we recommend you make your BI/PD and UI coverages as high as possible, and, in most cases, also add an umbrella policy.
MYTH - If my landlord has insurance, I don't need it.
TRUTH - They are covered, you are not. Get a renters policy. They are very inexpensive and will cover you for lost personal property, liability, and alternate housing.
MYTH - Insurance covers everything.
TRUTH - All policies have exclusions and limitations. Read your policy packet, or ask your agent if you will have coverage. Get advice from your agent before filing a claim, it could still count against you, even if you are denied or change your mind about following through.