Car Insurance And Life Insurance Myths

While the internet enables us to find information quicker and easier than ever before, it has also given rise to a lot of so-called ‘experts’ and misinformation. This means people end up believing things that are not actually true. So take a look at some of the common car insurance and life insurance myths you need to stop believing:

Life INSURANCE MYTHS

We are going to start by taking a look at some of the common myths that concern life insurance. So, let’s clear those up for you first:

I don’t need coverage because I do not have any dependents and I am single

This is one of the common myths that we see circulating. A lot of people assume that life insurance is only designed for the breadwinner or people that have children. This could not be further from the truth. Life insurance is for all, and you will be surprised by how much of an impact it could have. Plus, the sooner you get life insurance, the cheaper it will be overall. This is because life insurance gets more expensive as you get older, as a lot of insurance policies do. You can use https://discountlifecover.co.uk/ to help you find reasonable priced insurance if you are worried about the cost. 

I am young and healthy, so life insurance is not needed

We don’t want to make things bleak and depressing, but problems can arise no matter how old you are. We all like to think that things won’t happen to us, but you only need to turn on the news to hear stories about car crashes and other sorts of tragedies that no one would have expected. Therefore, it is important to be prepared and protected for all possibilities, and this is exactly what life insurance is all about. 

All life insurance payouts are taxed

Well, some life insurance payouts can be taxed, it really depends on your circumstances and where you are based. A lot of life insurance payouts are not taxed. It tends to be the big earners and big payouts that are taxed, but again, this differs from state to state and country to country, so the best thing you can do is your research to find out what rules and stipulations are going to apply to you. Your insurance provider will also be able to advise you on this as well, so make sure that you capitalise on their expert knowledge and use it to make the right decisions for you.

CAR INSURANCE MYTHS

Now that we have helped you to understand some of the common myths regarding life insurance, let’s move onto car insurance myths:

It is best to let your policy automatically renew every year

There are no prizes for remaining loyal when it comes to auto insurance. If your policy is due to run out soon, you would definitely be better off doing a car insurance comparison to see if you can find a cheaper deal elsewhere.

Black box policies have a curfew

A lot of people overlook black box policies because they believe that they will not be able to drive after a certain time. This is not the case. When black box policies first came out, there were a few that operated in this manner but times have moved on. Insurers now base their premiums on factors relating to driving behaviour, for example, accelerating, braking, speed, and mileage. For young drivers, black box policies present an effective method for reducing your premiums.

You can drive any car with a comprehensive cover

There is a huge misconception that you are automatically covered to drive someone else’s car if you have comprehensive cover. While some of these policies will offer third party liability, it is not a given. You need to check the terms and conditions relating to your specific policy before you drive someone else’s vehicle.

You don’t need to pay an excess if the claim was not your fault

If you can prove the claim was not your fault, you will get the excess waived. However, you will usually have to pay it first, and then it will be sent back to you.

So there you have it: some of the most common car and life insurance myths debunked. Hopefully, you now feel like you have a much better understanding of what does and does matter when it comes to auto and life insurance, as well as the different factors you should consider when purchasing.