Did you know that in the early 19th-century movie goers were afraid of dying because of extreme laughter such that they bought insurance? Or that Starbucks spends more on paying health insurance for its employees’ more than it pays for a coffee? A lot has changed since the first insurance contract was signed in 1347, but one thing that has persisted over the centuries is that not everyone understands how insurance works.

Here are some of the outstanding facts about insurance that you will be shocked to know are true. Knowing the truth might save you a lot of money.

1. Home insurers prohibit certain dog breeds

Many insurance policies do not allow homeowners to keep specific dog breeds because they might cause issues. According to statistics from the CDC, approximately 4.5 million people suffer dog bites annually, and 20 percent of these require medical attention. Make sure you go through your policy to know the breeds you shouldn’t keep.

2. You can bring down your health care costs by cutting off unnecessary emergency room visits

Many of the visits to emergency rooms are not emergencies. Some people go there to be treated by a physician. Since the centers are meant for urgencies, you are likely to pay more than what you would spend in a regular hospital. When you visit the ER regularly, your insurer might increase your healthcare premiums. This will also reduce congestion in emergency rooms, and those who are in need will be attended to quickly.

3. Compensation for personal injury cases is extensive

Unlike criminal cases that must involve court proceedings, personal injury cases can be resolved through litigation. Only two percent of personal injury cases get to court. Dairn Shane from Preszler Law of Vancouver explains that non-pecuniary losses, including pain and suffering, are difficult to quantify but can still be the basis for a legal claim.

Other losses that can be compensated in a personal injury case include:

Property damage
Loss of earnings
Past, current and future medical expenses

4. Your credit score impacts your insurance costs

You might be aware that credit scores influence mortgage rates significantly, but you have never realized how your score affects your insurance premiums. Insurers figure out that your rating reflects on how you manage your money and might suggest how likely you are to file insurance claims. Therefore, improving your credit score might help reduce the amount you spend on insurance.

5. Your home insurance cover is insufficient if you run a home business

Homeowner policies give almost no coverage for your business, and this is something that many people do not realize. Most homeowner insurance policies do not feature liability coverage within a homeowner’s policy. If you are managing a home business, consider getting separate coverage or talk to your insurer to have it included in your current policy.

6. Car insurance for male teenagers is surprisingly high

When your male teenager starts driving, college costs are not the only money you have to get. You will also need to get car insurance for them, which can be quite costly. Parents who include their teen sons on their car insurance can expect to pay higher rates than before.

7. Your home insurance probably covers meteor and volcano damage

Have you ever taken the time to go through your home insurance policy? If you haven’t, it’s probably time to do so. Some home insurance policies cover meteor and volcano damage. If you live in an area and that is prone to natural calamities such as floods and volcanoes, having this cover may help. If not, you might be wasting money on something you don’t need, and you should confirm with your insurer about it.

8. Insurance is thousands of years old

Although insurance forms and sales agents didn’t exist thousands of years ago, insurance has been around for longer than you can imagine. The earliest case of insurance was reported in China about 3,000 B.C. Merchants who relied on shipping goods were at risk of losing their merchandise. So, they distributed products across several ships so that a shipwreck wouldn’t mean a total loss to anybody. Modern insurance works in the same way.
The more you comprehend how insurance works, the more you will manage to save. Do not take any policy for its mere face value. Instead, aim at understanding the in-depth details of every insurance policy before affirming with your signature. There is a lot to understand about insurance beyond these eight interesting facts.