5 Common Misconceptions About Insurance​ | Farrell Agencies

5 Common Misconceptions About Insurance​

Posted by Farrell Agencies on February 11, 2020

As with any industry, there are a variety of misconceptions that plague the insurance world. Here, we highlight 5 common myths and dispel their fallacies.

Misconception #1: There Is No Need To Use An Insurance Agent
Although buying protection directly from an insurance company may seem fast and easy, it may not be the best route – or the least expensive. Insurance policies can be complicated, and many consumers may not be knowledgeable enough to make informed decisions. You may unwittingly accept or reject options that could leave you under or over-insured. The professional staff at Farrell Agencies will provide guidance on the best coverage and products to meet your needs.

Working directly with an agent at Farrell Agencies means that you are working with someone who understands your location and knows you personally. This can be really beneficial when a claim is made. You may run into issues or have questions – and without someone to guide you through the process, you could end up making a mistake. Whether it is an automobile collision or fire damage, having a diligent and knowledgeable agent to guide you through the red tape is invaluable. Our agents have been through this process hundreds of times and are here to help.

Misconception #2: Insurance Agents Are All The Same
Although insurance brokers and agents both sell insurance, insurance agents typically only work for one insurance provider and therefore can only sell policies from this company. Insurance brokers, on the other hand, have a distributor relationship with several insurance companies. This enables the broker to offer customers several policies and allows them to compare different products and pricing.

At Farrell Agencies, the brokers are committed to providing you exceptional service. They take their time to get to know you and understand your needs. They are aware of and are knowledgeable about a variety of insurance products and coverage. They will use their expertise to find the most affordable and best-suited packages to meet your needs and budget.

Misconception #3: Overstate Your Claim Because You Always Get Less Than What You Ask For
Some people believe that it is sensible to overstate the damages or losses in a claim because the coverage won’t be accurate. In fact, you will receive coverage for your losses according to your policy terms, type of coverage and deductibles. Although it may be tempting, overstating an insurance claim is actually insurance fraud and is a crime. Providing false information can also invalidate the coverage and leave you with nothing.

Misconception #4: No Fault Insurance Means It’s Not Your Fault
If you cause an accident, you are still considered to be at fault. The term no-fault insurance simply means that you are entitled to receive compensation from your insurance provider even if you are at fault for the accident. If you are injured in a car accident, no fault insurance generally restricts you from suing the person who caused the accident. Alternatively, if you cause an accident, you will not be liable for any costs or damages arising from the accident (other than your deductible). There are certain exceptions to this rule. For more information on no fault insurance in Saskatchewan, click here.

Misconception #5: Insurance is too Complicated to Understand
Yes, the insurance world is filled with a wide array of providers, products and services that can seem complex and tedious. And, unfortunately, many people avoid getting insurance or make mistakes in selecting coverage because they believe the process is too complicated to understand. With the help of a knowledgeable broker; however, you can become savvier in terms of understanding your insurance policies. Client-focused brokers, like those at Farrell Agencies, can simplify the process and educate customers on the complexities of insurance policies.

Having insurance is important in order to safeguard your family, finances and possessions against the uncertainties and risk in life. Contact the professionals at Farrell Agencies today to help you find the truth about insurance so that you can make informed, money-saving decisions.

Phone: 1 306 783 4477
Toll Free: 1 800 268 3675
Fax: 1 306 786 7577

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