Five Things People Get Wrong About Insurance

One of our goals for the Pioneer Blog is to provide clarification on things that the general public gets wrong (yes, we said it – wrong) about insurance. And, honestly, we don’t blame you for not understanding our industry or maybe not even trying to understand it. People love to hate insurance and most of that hate stems from confusion about what we do and how we make decisions. On the surface it might seem complicated, but it’s not.

There seems to be a lot of confusion about what goes on in insurance so let’s clear some things up:

• First and foremost, people want to believe Insurance Companies are nothing but a bunch of shysters. We’re not. We are literally required by law to pay claims or deny claims based on signed contracts. Boom, done. Next topic.
• People generally believe that Insurance Companies and Insurance Agents/Agencies are one and the same. They are not. Insurance Companies provide the product, while insurance agents/agencies sell said product. It’s a business-to-business-to-customer type of deal (B2B2C if you’re in the business world).
• Contrary to popular belief, the new laws around no-fault auto insurance in Michigan were not designed by insurance companies (nor are most laws around insurance). We are at the mercy of laws just like you. *Cue the disappointment*
• Homeowner’s Insurance is not for home maintenance. Your insurance should take care of covered “sudden and accidental” problems that arise as it is stated in your policy. The purpose of Homeowner’s Insurance is to make you whole again if something big and terrible happens. Your best bet is to talk to your agent to make sure you understand what is covered by your policy, and if something “minor” does happen, ask whether paying for repairs yourself will save you money in the long run. They’ll give you the rundown and help you make a decision.
• Last one, and this is just for funsies, you can’t change or cancel coverage via a Facebook message to your Insurance Company. Nope. Can’t do it. No tweets or Tik Tok videos either. Is Vine still a thing? Cause, no to that too. You need to actually get on the phone with your Independent Insurance Agent and talk to a person about coverage changes or cancellation. Not a huge fan of talking on the phone? Pioneer has a few self-service options for our customers on our website or mobile app.

Listen, we get it. Insurance is a lot. A lot of jargon, a lot of rules, a lot of things that might feel unnecessary. It’s been around forever, it’s boring, it’s not really that cool. We don’t expect everyone to share our enthusiasm around insurance but we do hope that everyone will try to understand how it works.

Have any questions about what you just read? Please contact your Independent Insurance Agent or email us at socialmedia@psmic.com!

Disclaimer: This is a general interpretation of processes and coverage. All claims are subject to Insuring Agreements, Endorsements, Exclusions, Terms, and Conditions of the Policy.