There are many misconceptions surrounding insurance. It’s understandable, given that policies can sound like another language. From declarations to exclusions to endorsements, it’s easy to get confused without the guidance of an expert. Whenever in doubt, talk to your Phoenix expert. In the meantime, let’s debunk some of the most common insurance myths. 

1. Red cars cost more to insure.  The vehicle’s color is not a factor in premium calculation. Your vehicle could be red, black, white, or anything in between, and it wouldn’t make a difference in premium. Some legitimate factors are:

• • vehicle: make, model, body type, engine size, age, price, safety record, likelihood of theft
  • driver: age, driving record, credit history
• Auto insurance will provide coverage if your car is stolen or damaged from weather or vandalism.  Unfortunately, many learn this the hard way. However, you only have coverage for these risks if you have comprehensive coverage in addition to standard coverage.   
• Seniors pay more for auto insurance.  Actually, the opposite is true. Individuals 55+ may be eligible for special discounts.  
• Homeowners insurance will cover damage from a flood.  While a homeowners policy will cover water damage under certain circumstances, flooding is not one of them. If your home is in a flood zone, you should carry separate flood insurance.  
• Homeowners insurance will cover damage from pests.  Unfortunately, pest infestations and related damage are not typically covered by homeowners insurance. Preventable damage is usually the homeowner’s responsibility, so do your best to prevent them. Keep your home clean, dry, and sealed, and keep your yard tidy and well-drained.