Men may be more gullible when it comes to insurance myths
than women but even women think a number of popular myths about insurance are
true, according to a survey by online insurance seller Insure.com
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.
Insure.com also looked at who is more likely to believe a
myth – men or women. In all cases except two, men were more likely to be duped
by an insurance myth.
Below are the 10 insurance myths:
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, 58% 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.
Myth 5: The
Affordable Care Act 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: The Affordable Care Act prohibits health
insurers from basing rates on pre-existing conditions.
Myth 6:
Comprehensive auto insurance covers everything and anything. 32% think it’s true
(41% women, 59% men). Reality: Comprehensive coverage covers only narrow
portions of possible problems, including car theft, storm damage, animal
collisions and vandalism.
Myth 7: Thieves prefer
to steal new cars. 29% think it’s true (42% women, 58% men). Reality: It’s more
lucrative to steal old cars and sell them for parts.
Myth 8: If my
friend borrows my car and crashes it, their insurance will pay for damage. 25%
think it’s true (48% women, 52% men). Reality: Your insurance pays when someone
else drives your car.
Myth 9: The
Affordable Care Act requires me to take the health plan offered by my employer.
19% think it’s true (41% women, 59% men). Reality: The ACA requires almost all
Americans to buy health insurance but doesn’t say where the must get it.
Myth 10: Out-of-state
speeding tickets can’t follow you home. 13% say it’s true (34% women, 66% men).
Reality: Yes, they can.
