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Let’s face it, insurance can be confusing for the average person who doesn’t work in the insurance industry and frankly finds the topic pretty dull. Most people have insurance policies, but many don’t actually understand the ins and outs of the market. And, of course, there are tons of myths, fallacies and misconceptions about insurance floating around on the Internet. Not to worry, your friendly neighborhood DSI agents are here to help clear things up!

Here is a brief list debunking some of the most common myths surrounding the insurance industry.

: I should buy homeowners insurance coverage based on the real estate market value of my house.

TRUTH: Actually, you should buy home insurance coverage based on what it would cost to reconstruct your home. In many areas of the country, the cost to rebuild your home varies significantly from the actual real estate market value. For instance, if you live in an area with a weak housing market, it may cost more to rebuild your home than what you could sell it for. (Your Darr Schackow Insurance agent can help guide you in making sure you have enough coverage, just give them a call!)

: Some vehicle colors are more expensive to insure than others.

: The color of your car has no impact on your insurance rates or policy cost. Insurance companies do not use this as a factor in their calculation of rates, so go ahead and purchase that red sportscar!

: If I am at fault in a crash that caused damage to others, my automobile insurance provider can instantly cancel my policy.

TRUTH: Insurance companies generally have to wait until your policy period is up in order to cancel your plan and send you a notice of nonrenewal. In most states they have laws prohibiting insurers from canceling insurance mid-policy due to your having filed a claim.

: Small cars are cheaper to insure than larger models.

TRUTH: Minivans and mid-size cars are generally the cheapest vehicles to insure. Since small cars are often driven by younger, inexperienced drivers, they typically don’t have the cheapest rates. Injury claims are also higher for small cars because they lack the weight and protection that larger vehicles offer.

: Comprehensive automobile insurance covers everything and anything.

TRUTH: Although the title “comprehensive coverage” could lead you to believe this myth, comprehensive coverage doesn’t actually cover EVERYTHING. Comprehensive coverage pays for specific problems such as vehicle collisions with animals, car theft, weather damage and vandalism. Talk to your DSI agent about additional coverage we recommend to ensure that you’re totally protected.

: Thieves generally prefer to steal new cars.

TRUTH: Surprisingly, older models are actually considered more valuable to car thieves. With older cars, there are more opportunities to sell individual parts, and that results in bigger profits.

: If someone else drives my car and causes an accident, their insurance will cover the damage.

TRUTH: Insurance follows the vehicle rather than the driver. Since you are the legal owner of the car, your insurance provider will need to handle the claim. If a friend or relative causes damage to someone’s car, the claim will appear on YOUR automobile insurance policy and will affect your rates for the following year.

There is plenty more you can find out from the trained insurance experts at DSI, simply give us a call today to learn more about affordable policies available for you all of your auto, life, homeowners and commercial insurance needs. We’ve got you covered! 888.337.9322

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