7 Things You May Not Know About Insurance

Woman driving a red car while smiling

Does it cost more to insure a red car? Can you get extra insurance for your ankles? Does my credit score affect what insurance I can get? There’s a lot to the insurance business that you probably don’t know about. So, we’re answering these questions and more with seven facts about insurance.

1. The color of your car does not affect your auto insurance 

It’s a popular myth – it’s more expensive to insure certain color cars because they are more likely to drive recklessly or have an accident. But it’s not true. Go ahead and get the red car – color doesn’t factor into your auto insurance costs. There are some cars that are harder to insure, but the color isn’t the reason why.

2. Fire departments were created around insurance 

Fire departments were originally created to put out the fires of specific households and policyholders. Today, they won’t check your policy before they break out the hoses. Everyone has a right to fire department services.

3. It’s possible to insure different body parts 

We’ve all heard of celebrities insuring their legs, faces, and even tongues for huge amounts of money. If the body part is considered an important part of how they make their income, chances are they can get a policy to protect it. 

4. Your credit score can significantly influence your insurance costs 

Credit-based insurance scores can impact insurance premiums. According to the folks behind FICO, about 95% of car insurers and 85% of home insurers will check your credit score. Companies in most states can use the scores to calculate how likely you are to file insurance claims. 

5. Your home’s market value is not the cost to rebuild 

A homeowners policy coverage value is based on the cost to rebuild your home, not its market value. For example, the lot it sits on is not likely to sustain damage, so the value of the lot doesn’t need to be included in insurance. Your home may have greater value because of its location, but the materials and labor to rebuild would be the same if the home were located somewhere else.

6. Your home may be protected against meteor damage 

Flood? You need special coverage. Earthquake? Nope. Meteor? Volcano? Well, in the unlikely event, you should check your homeowners policy. You may be covered! Read your policy closely or talk with your agent (like us!), to find out exactly what is and isn't covered, so that you can decide whether you want to add coverage for floods or earthquakes.  

7. Smoking can fire up your life insurance costs 

Smoking presents risks to your health and life, so expect an insurer to take note of your habit. Smoking can impact your health insurance and your home insurance! Smokers have a higher rate of house fires.

Insurance can be complicated, but you can trust our advisors at MetzWood to know the ins and outs of every policy. Whether you’re curious about your home, auto, or life insurance coverage, our team is just a phone call away and can tell you exactly what’s covered and find you a better policy at a better price. 


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