1. It costs more to insure a red car.
The color of your car has no effect on your insurance premium. Insurance premiums are based upon driving record, experience, and commute distance. Model, make, age, body type, and engine size are also factors.
2. Flood damage is not covered under my property insurance.
Most insurance companies do not offer flood coverage; however, under most comprehensive property insurance policies, you will have coverage for a “sudden and accidental escape of water”, such as a burst pipe or hot water tank.
3. Items stolen from my car are not covered by my car insurance.
However, belongings stolen from inside your vehicle can be claimed through the “contents” section of your property policy.
4. I rent, and I don’t have a lot of stuff. It is not worth it for me to get Tenant’s Insurance.
People underestimate how costly it can be if their belongings are damaged or stolen. What’s more, the liability portion of your property insurance is probably its most important component. If you cause damage or injure someone on their property, your property insurance can actually protect you.
5. My insurance will cover another driver who gets into an accident with my car.
When you lend your car, you lend your insurance, too. However, the driver must: be legally allowed to drive, have your permission, and be driving according to the prohibited uses clause in your policy (he/she wasn’t racing, for instance).
6. I should never admit responsibility when in an accident.
TIG and Go Insurance reserves the right to defend you following an insured loss. You should never admit fault until your insurer has had the opportunity to review your file and determine how they want to proceed.
7. If the police do not give me a traffic violation after an accident, my insurance premiums will not go up.
The police are not responsible for determining who is responsible for an accident. All insurance companies use Fault Determining Rules to render a verdict on which party is responsible for a particular incident.
8. Settling a “fender bender” out of pocket won’t affect my insurance premiums.
If you settle with a third party without the aid of an insurance company, that third party still has up to a year to file an insurance claim for vehicle damages, and up to two years for injuries.