When it comes to insurance policies, it's important to be an educated consumer so you purchase the right type and amount of insurance. Misinformation abounds regarding the insurance industry, causing many people to buy either too much or too little insurance coverage for their needs. The insurance brokers at Sun Valley Insurance, located in Indian Trail, NC, discuss some common misconceptions and explain the facts about insurance policies.

These are three of the most common misinterpretations about insurance coverage:

• Your Benefits Should Equal Your Premiums: Some policyholders may feel like auto and homeowners insurance isn't worth the cost if you don't file a claim after years of paying your premiums. However, most insurance policies are meant to serve as a protection from financial catastrophe, not to cover the cost of minor damage you can afford on your own. If you believe you're paying too much for insurance, choose a high deductible plan that saves money on your premiums.
• Insurance Should Only Cover Likely Disasters: Even if you live in an area prone to earthquakes or tornadoes, you may believe you do not need to purchase insurance for natural disasters because you will probably never use it. However, if you don’t have enough money to rebuild your home or pay off your mortgage, you should have coverage for financial protection. If a natural disaster destroys your house, it may be impossible to recover on your own without the help of insurance.
• Buy Only the Minimum Amount of Coverage: Purchasing the minimum amount of insurance required may seem like a great way to save money, but it may put you in financial danger. For example, if you purchase only the minimum amount of auto liability coverage and you cause a car accident, you may be responsible for the medical bills of anyone injured. The money you owe could put everything you own and your future earnings in jeopardy.

The brokers at Sun Valley Insurance can help you find a policy that is affordable and provides the coverage you need. Give their team a call at (704) 282-1155 or visit them online to learn more about the insurance company and their services.