The Most Common Insurance Myths Debunked

When it comes to insurance, there are many common misconceptions that can lead to confusion, or without the cover you expect! It is important to understand how your insurance really works to help you to avoid unexpected costs and make more informed choices.

That is why Understanding Insurance is here to help you debunk the most common insurance myths and tell you what you should know instead.

Myth 1: "The cheapest policy is always the best deal."

It’s normal to look for the lowest price when picking your insurance. However, the cheapest policy may not always be the best value, or the right choice for you.

Some lower-cost policies might come with fewer benefits or a higher excess. An excess is the amount of money you must pay yourself if you make a claim. For example, if your excess is €500 and the claim is €2,000, you pay the first €500 and your insurer covers the rest.

If a policy has a high excess, you could end up paying more out of your pocket if something goes wrong, so you should decide the risk tolerance you would like to take when choosing between policies. Also, cheaper policies may exclude certain types of claims or features, such as breakdown cover in motor insurance.

Before you choose a policy, take time to review what is included and understand your excess so you can be confident it meets your needs.

Myth 2: "I don't need to tell my insurer about small changes."

It might seem like minor updates don’t matter, but a small change can affect your insurance.

For example, modifications to your car such as roof racks or parking sensors, may need to be declared. The same applies to changes in your circumstances, like if you move house or change how you use your vehicle.

Sometimes, if you don’t inform your insurer, your claim could be declined and your cover affected. Every insurer is different and the safest approach is to let them know about any changes you make and ask them how it affects your policy.

As requirements vary between insurers, it's always best to let your insurer know about any changes and ask how they may impact your policy.

Myth 3: "I only need to review my insurance when it renews."

Renewal time is important, but it shouldn’t be the only time you think about your insurance.

Your situation might change throughout the year, and your policy needs to know about these changes. If you wait until renewal, then you might not have the right level of cover in the meantime.

Keeping updated with your insurance throughout the year can help make sure your protection is suited to you.

Myth 4: "My insurance covers absolutely everything."

Insurance policies are designed to cover specific risks, but not every possible situation.

Your policy will include terms, conditions, limits and exclusions. For example, there may be limits on certain items or situations where cover doesn’t apply.

Because of this, it is important that you read your policy documents carefully, so that you fully understand exactly what is covered.

If you are unsure, contact your insurer, who can explain your cover in more detail.

Myth 5: “Once I have insurance, I don’t need to think about it again.”

Taking out insurance is not something you can completely forget about once your policy is in place.

It is important to keep your documents safe, understand your cover and know how to contact your insurer if needs be.  Regularly reviewing your policy can also help ensure it continues to meet your needs.

Being prepared can make things much easier if you ever need to make a claim!

Need More Assistance?

If you have further questions, you can contact Insurance Ireland’s Information Services team:

Email: feedback@insuranceireland.eu
Tel: (01) 676 1820