It's surprising how long myths can survive when no one takes the time to debunk them. We already busted four myths about insurance in a previous article, but now we're back for more!
Here's part two of our insurance-mythbusting chat with Registered Financial Advisor Goran Loncar.
Myth 1 – My house is covered if I go on an extended holiday
"It is – but it all depends on the policy wordings," Goran explains. Insurance companies have different limits and sublimits, so you need to ask your insurer what theirs are.
"It's best practice for the house owner to call the insurance company and tell them how long they're going away for. If the trip lasts more than 30 or 60 days, they'll start asking questions; will the mail be cleared from the mailbox, will the lawns be mowed, will there be anyone staying there at all? If the answers are all no, they may increase the excess – all of those 'no' answers can make a house look unoccupied, creating more risk and potential for a break in."
It's a good idea to get a friend or neighbour to pop round and make it obvious someone's been there – and if you tell your insurer this will be happening, you may be able to escape an increased excess.
Myth 2 – A vehicle's make and model has no influence on premiums
The kind of car you drive actually does impact the cost of your insurance.
"In New Zealand, cars popular with boy racers, that are fast and often souped-up, like Subarus or Holden Commodores – the premiums to insure those types of cars are a lot higher."
Not only will the insurer want to know about the make and model, they'll want to know other things too.
"The insurer may want to know whether the car is garaged, how many kilometres are done in the car per year, does it have an alarm or immobiliser, is it turbo – all those little bits that can add to the risk factor of it being stolen or being involved in an accident."
Myth 3 – Personal property inside my car is covered by my insurance
Your car insurance won't cover any property stolen from inside it – that's what your contents insurance is for. But if items are stolen from your car, you may find yourself paying more than if they were taken from your home.
"Nowadays, what's the most stolen thing out of a person's car or house? It's mostly electronics or jewellery. Insurers usually put additional excess on the contents policy where it says "if any of these things are stolen out of your car while you're not there – you have to pay an extra premium."
The takeaway is that if you have to leave valuables in your car, make sure they're always out of sight.
Insurance doesn't have to be a headache. Get in touch with us today to learn more about what we can offer you.