The Common Misconceptions Around Insurance

There are many people who are sceptical about insurance, thinking it’s unaffordable or that they won’t need it. However, there are plenty of misconceptions about the insurance industry that stops people from investing.

It won’t happen to me

“That won’t happen to me my home is secure”. This is the common phrase that is heard around the industry, but you can’t predict the future and can’t say for sure that you won’t be involved in an accident or be the victim of a robbery. You won’t want to be stuck with the cost of some damage to your home or your valuable belongings heading out the door with an intruder.

It costs too much

This is one of the biggest misconceptions around the industry. People believe that insurance costs too much, however, they don’t realise that you can tailor a plan that fits not only your budget but will cover only the areas that you know you could be at risk in. For example, if you live in an area that has no threat from flood damage, you won’t have to outlay for that under a damage plan.

Brokers work for insurance companies

Not true! Brokers are there for you. They will source the right option and insurance for your needs from insurance companies and give you the best possible price. They are also there to answer any questions that you might have surrounding your insurance. They are highly trained and are able to help you determine the exact plan for you.

My car colour will change my insurance plan

Another misconception. A funny one at that. The colour of your car has absolutely no impact on the amount you’ll pay for insurance, however, we know of at least one company that will give a 5% discount if your car is white, as they found it featured less in their reported claims. Overall though, you can go right ahead and get that red sports car you’ve always wanted, however, the nicer the car, the more you’ll pay, factor that in.