MYTH ONE: It doesn't hurt to stretch the truth about how much your possessions are worth when making a claim.
THE REALITY: People who exaggerate the value of their belongings to their insurance company are taking a serious and foolish risk. If they're caught, the company is entitled to invalidate their policy and refuse to pay out.
Even worse, your insurance company could report your actions to the police and you may face a criminal conviction – resulting in a fine or even a prison sentence.
MYTH TWO: Garden furniture is covered by home insurance.
THE REALITY: All policies vary so it is crucial you read the fine print to check if your garden furniture is protected. If you leave items such as bicycles and tools unsecured, they may not be covered.
MYTH THREE: You don't need insurance if you're travelling in Europe with a European Health Insurance Card.
THE REALITY: The European Health Insurance Card (EHIC) allows travellers to receive basic medical treatments for free or at a reduced price in the European Union. However, you'll need to buy separate travel insurance to protect your possessions or be covered for more extensive medical treatment.
MYTH FOUR: You can still claim if you have been careless with your belongings.
THE REALITY: If you are negligent with your possessions, you are unlikely to receive a payout from your insurance company when they are stolen.
Imagine you left your car engine running with the keys in the ignition on a frosty morning so you could defrost the windscreen.
If you popped back into the house for a cup of tea and your car was stolen, your insurer would probably refuse to pay out.
This is because your actions would be deemed negligent. Unattended vehicles are specifically excluded from car insurance claims.
MYTH FIVE: You can't claim on your travel insurance if you've been drinking.
THE REALITY: Your insurance company may reject your claim if you are extremely intoxicated when you have an accident. However, you should be covered if you have been drinking responsibly.
Bear in mind there are exceptions to this rule. If your holiday involves an activity that requires you to stay sober such as skiing, drinking alcohol could invalidate your policy.
MYTH SIX: Insurers reward loyal customers.
THE REALITY: Unfortunately, loyalty rarely pays when it comes to insurance. This is because many companies only offer their best deals to new customers.
Whatever kind of insurance you're buying, you should always get quotes from a range of companies. One of the most effective ways to do this is by using an online price comparison site.
However, it's always a sensible idea to seek independent advice from a financial adviser if you have any doubts about your potential insurance policy.
