Save money on your home and auto insurance now by debunking money-sucking, time-eroding myths you’ve believed.
Auto and home insurance are something you have to have, like it or not. So, if there’s a way to do it smarter and save money each year, would you want to know how? Yeah, so did we. So, we sat down with Tevis Upton of Allstate, and he shared the costly myths he hears repeated ad nauseam at his Allstate agency. Confession: we were guilty of believing more than one.
Thankfully, Tevis helped us save face: “These myths are rooted in understandable, reasonable thoughts,” he says. (Translation: you’re not an idiot if you’ve believed them.) “But it’s my passion to help consumers learn the facts.”
MYTH | FULL COVERAGE INSURANCE IS A THING.
If you’ve ever claimed to carry “full coverage” auto insurance (we’re guilty, as charged), it’s time to change up your lingo. “It’s a misleading, slang term,” explains Tevis. “There is no one-size-fits-all policy that is ideal for all situations. Rather, each consumer should pick and choose what goes into their individual policy.”
However, if your coverage is from an 800-company, you may never be offered the chance to choose coverage limits to suit your family. The result? You end up under (or over) insured. “Insurance is set up to be customized based on each individual’s unique factors,” says Tevis. “Why wouldn’t you take advantage of that?”
MYTH | RATES GET LOWER WITH YOUR AGE (OR THE AGE OF YOUR CAR).
If adding an extra candle to your cake makes you do the happy dance in anticipation of diminishing auto insurance premiums, you’re not alone, sister. “We frequently hear from folks who expect that their costs should go down as their age goes up,” says Tevis. But as long as you are over 25, age won’t affect your premiums.
What may alter them? The age of your car. While most people expect an older car to equal reduced premiums, the reverse is typically true. “With an older vehicle, you have to factor in the cost of reduced accessibility of parts,” he explains.
MYTH | CLAIMS DISAPPEAR IF NOTHING IS PAID OUT.
Any time you file a claim, it shows up on your record and will count against you when it comes to premium costs. “Every claim – paid out or not – goes into a loss history database per insurance regulation,” explains Tevis. “And that claim follows you – not your house or your car – for three years.”
To steer clear of ling a claim that may result in higher premiums that aren’t worth the payout, Tevis recommends calling your agent for advice first. “We can find out if it is worth filing in the long run by talking through the positives and negatives based on your individual situation,” he says.
MYTH | HAVING AN INSURANCE AGENT INFLATES YOUR RATE.
Because we know Tevis (shown left with his kids) is a stand-up guy, this one didn’t get us, but he says it’s a common myth across the board. “There is an idea that an insurance agent doesn’t proactively analyze your policy and may even withhold discounts in order to pad their commission,” he says. “But, that is 100 percent false. My goal is to keep everyone’s rates as low as I can without forsaking coverage. I want to keep my customers on board as long I can; they’re like family.”