Facts about Personal Auto Insurance
- I have automatic coverage for my new car because my car salesman says I have 30 days to call my agent. The fact is that all policies specifically say what kind of automatic coverage applies or does not apply to a new.
- My auto policy covers my rental car. The fact is maybe it does. It depends on what kind of vehicle you are renting, what you are going to do with it, how you are going to drive it and how long you are going to have it in your control.
- My policy only covers someone who I give written permission to drive my car. The fact is that most policies will cover anyone who the Named Insured gives permission to but there are exceptions. Most insurance policies consider household members to be automatically covered. It is true, however, that all members of the household need to be identified to the insurance company.
- A break in my windshield means that I will have to pay my Comprehensive or Other Than Collision Deductible out of my pocket in order to get a new windshield. The fact is that if the break in the windshield or other auto glass is repairable; most auto insurance companies will pay for the cost of repair in full.
- If my car is older, not worth much money and gets totaled in an accident, my insurance company will only pay the blue book value for it. The fact is that depending on the Loss Settlement provision in your policy, this is probably true. An older car that has little value may not be worth the cost of the Collision premium and the deductible if a total loss occurred.
- I only need to be concerned about price because all auto insurance policies are the same. The fact is that all auto insurance policies are not alike. First and foremost would be the coverage limits provided by the policy. Any given insurance company may offer a policy that has the minimum coverage limits as required by the state to one million or more dollars of coverage. And here's where some folk really get confused. Even if two polices offer the same limits, they may not offer the same coverages and you really need to be concerned with both limits and coverage to make you are properly protected.
- I have a third party towing service and I also have Towing and Labor coverage under my policy so I can collect from both. The fact is that you should not try to collect from both so if you do have a membership with a third party towing service you should not have the towing coverage on your policy.
- Red cars cost more to insure than other colors. The fact is if your red car is a sports car and your other color car is a mini van maybe the red car does cost more to insure but just about all insurance companies do not ask what color your car is when offering you a price for auto insurance.
- I'm a safe driver and have never had an accident that was my fault. My car is getting older and is worth less than it was before but it seems like every year the cost of my insurance goes up. The fact is that your auto insurance basically does two things for you: It pays for your responsibility for damage you do to someone else's car; for an injury that you cause someone else to incur and it pays to repair damage to your car. The reality is that the cost of medical care goes up every year and while the value of a car might decease over time the cost of repair, both labor and parts, goes up.
- I have to pay for Uninsured Motorists coverage in my policy. I don't understand why I have to pay for someone who cant bother to buy their own insurance. The fact is that the Uninsured (and in some states Under-insured) Motorist coverage in your policy does not pay for the other guy. It pays you if you are injured in an automobile accident and the other guys policy doesn't have enough coverage to pay for you injuries.
