Navigating Cherry Hill NJ insurance myths

A lot about insurance is very simple and very straightforward.

Folks are aware of the fact that they have to pay a monthly premium to take advantage of Cherry Hill NJ insurance options, and that they may even have to fork out a little bit of extra out-of-pocket cash (in the form of a deductible) to take advantage of all the coverage that they have purchased.

At the same time, folks are pretty much aware of the fact that their insurance provider will cover them for pretty much anything and everything that they have agreed upon in their insurance contract – and that this coverage can completely save them from financial ruin and all kinds of other headaches and hassles.

But that doesn’t mean that the world of insurance is anywhere close to simple or straightforward.

There are a lot of myths and misconceptions out there regarding Cherry Hill NJ insurance options, and you need to be completely certain that you are moving forward with the right coverage for your needs at the right price point – and that you aren’t getting sucked into any kind of NJ insurance deal that may not be in your best interest.

Hopefully by the time you are done with this quick guide you will better understand exactly what you’re getting into when it comes time to purchase any type of NJ insurance and that you’ll be able to avoid altogether most of the headache and hassle that these myths can cause.

Shall we dive right in?

“The smartest way to purchase Cherry Hill NJ insurance for my home is to cover its real estate market value”

Not only is this one of the most pervasive Cherry Hill NJ insurance myths, but it also happens to be one of the most devastating and destructive – especially if something terrible should happen to your home while you’re protected with this type of coverage.

The best NJ insurance companies are going to recommend that you DO NOT move forward with a Market Value type home insurance plan but instead a “Cost of Replacement” plan.

Because it is impossible to predict what the real estate market is going to do (just think about the market bottoming out in the early to mid-2000s), you don’t want to find that your home value has dropped so much that you aren’t able to replace or repair it just because your policy no longer pays out enough.

With a Cost of the Replacement insurance plan that’s never going to be a problem. You’ll always be able to rebuild and repair your property the cause your insurance will reflect the market costs of material and labor, and not the fickle and incredibly flexible real estate market at that particular point in time.

“Red cars are more expensive to insure than other colored vehicles”

Literally nothing could be further from the truth when it comes to Cherry Hill NJ insurance coverage for automobiles, but that doesn’t mean that 40% of Americans still buy into this real estate myth.

It’s critically important for you to realize that the color of your car has absolutely zero impact whatsoever on the amount of insurance that you are going to pay, and anyone that tells you otherwise simply isn’t quite sure of what they are passing along.

Yes, there are some research studies that suggest police are more likely to pull over red vehicles that appear to be going faster than the rest of traffic – but that has little to no impact whatsoever on the amount of money that you were going to have to pay for insurance (unless you start piling up tickets).

Don’t let this insurance myth or misconception stop you from purchasing that candy apple red car you’ve been dreaming about, and don’t let anyone tell you that you’re going to have to fork over some kind of “red car tax” as part of your automobile insurance, either.

That’s just not the way that this industry shakes out.

“If I am found at fault for inexpensive automobile accident my Cherry Hill NJ insurance company can drop me on the spot”

This is a very pervasive myth in misconception about the way that car insurance in particular works, but it’s critical for you to understand that almost all states in the US (including New Jersey) have passed laws and legislation that prevent NJ insurance companies from dropping you mid insurance term just because you have filed a claim – regardless of how expensive that claim may be for these companies to pay out.

If a company wants to drop you because of the expensive claims they will have to do so at the end of your term, and you’ll always have the opportunity to purchase insurance from another company that will not treat you as poorly as this. They’ll also have to send you a formal notice of nonrenewable explaining the reasoning. If they do not, they can be in some pretty hot legal water.

The only reason that a Cherry Hill NJ insurance company can decide to terminate your insurance contract in the middle of its term is if you haven’t been paying your monthly premiums.

“Prepaying my insurance is basically just throwing money out the window”

Again, this is a big-time myth in the insurance industry, and it’s one that you are going to want to squash ASAP.

You see, there are a tremendous amount of benefits available to those that prepay their Cherry Hill NJ insurance in advance. For starters, you aren’t going to have your insurance terminated midterm because of a claim simply because you’ve already prepaid your term in advance.

On top of that, you’ll almost always be a “preferred client” of your NJ insurance company because of your prepayment. They know that you’re serious about honoring your side of the deal, and you will get speedier claims, better coverage, and a more responsive insurance agent when you need their help most.
Finally, you can often times agreed to prepay a chunk of your insurance in advance in return for reduced rates, lower premiums, and lower the deductibles. It’s not at all uncommon to save upwards of 25% off of your total insurance costs when you prepay six months to a year in advance.