6 Scary Insurance Myths You Need To Know

It’s hard to know if a piece of information we hear is factual or not. When it comes to insurance, many people have fallen under the trap of believing a widely held but false idea, leaving them ill-prepared when something happens and they aren’t protected like they thought they would be. What are some of these myths? Here are six scary insurance myths you need to know:

insurance mythsMyth 1: Your home insurance policy automatically includes flood and earthquake insurance. Flood and earthquake coverage are not included with your standard insurance policy. For floods especially, a separate policy needs to be purchased. In most cases, homes in flood-prone areas are often required to have separate flood insurance because these types of natural disasters are generally too devastating/damaging to be covered by your homeowners policy.

Myth 2: Your homeowners or car insurance policy will cover your small business. Business liability and business equipment is not covered by homeowners insurance. If you are running (or considering running a home-based business), you must purchase a separate insurance policy for your business. Discuss this with your agent to ensure proper coverage.

Myth 3: You may be responsible if someone other than yourself, a friend or family member, wrecks your car.  When you let someone borrow or drive your car, you are also letting them borrow your insurance. If your car is involved in an accident, you may be responsible, even if someone else was driving. This means your insurance would cover the damage and it would go on your record. Before lending your car to anyone, check three things: check your policy or contact your agent to understand conditions and terms, make sure your friend or whoever drives your car has a valid driver’s license, and always make sure that your registration and insurance information are in your glove box.

Myth 4: You only need life insurance if you have children. Everyone needs life insurance. It helps cover the costs of funerals, bills, etc after death. It can also be used to leave money to a relative or your favorite charity. As you grow older, the cost of life insurance increases significantly and if you have a certain health issue(s), it will be difficult to be able to qualify for life insurance later in life. Make sure you have life insurance coverage, whether you have children or not.

Myth 5: Your insurance will cover you if your car is stolen, vandalized or damaged by falling tree limbs, hail, fire or flood. Standard liability protection will not cover these types of damage. You would need to purchase comprehensive and collision coverage, which are optional and will increase your premium, but having both coverages will help in fully protecting your vehicle from all types of damages.

Myth 6: You only need the minimum amount of auto liability insurance required by law. State laws require a minimum liability amount to be a legal driver; however, this will likely not be enough coverage in the event of an accident. In Ohio, the required minimum for Bodily Injury Liability Coverage is currently $25,000 per person injured in any one accident and $50,000 for all persons injured in any one accident. This can vary from state to state as well. In comparison to Ohio, the required minimum for Bodily Injury Liability Coverage in California is currently $15,000 per person and $30,000 per accident. Accidents will often cost more than the minimum limits, so you will have to spend more money out-of-pocket for whatever has been lost or damaged.

Understanding these myths will help you become aware of some of the changes you may need to make in your insurance policies. Contact your agent at (937) 848-6181 to make sure you are covered and getting the most out of your coverage.

This is our Story

Thomas & Grushon Insurance Agency was founded in 1960 by Charles Thomas and James W. Grushon. Located in the heart of downtown Bellbrook, Ohio, Thomas & Grushon has been serving the community by providing insurance solutions for homes and businesses across the Miami valley. In 1982, one of our founders, Charles Thomas, tragically died of a heart attack.  At this point, James’ sons, Jim and Mike Grushon, took over management and operations. Together, they built a company that is still serving the community today. In 2015, Mike Grushon stepped down as Agency President to accept a top position with Ohio Insurance Agents Association.

In an effort to pass on the excellent legacy and move Thomas & Grushon into a powerful position for future generations, Jim Grushon decided to bring in new agents and a new management team.  Grushon has been a name well known in the Bellbrook and Xenia community, and that legacy continues today with the addition of Jim Grushon’s daughter, Gwen Grushon-Price, who is agency principal with a specialty in Life Insurance.  Our other skilled agents include Ashley Abner, who is head of operations, Titus Sullivan, who specializes in commercial insurance and agency marketing, and Josie Armstrong, who provides customer support and quality training. Along with the new agents, Debbie Sullivan and Ronda Tirey bring 25+ years of insurance expertise to our agency. We pride ourselves in being an active member of the community and look forward to serving you for years to come.