As with most things in life there is a large amount of disinformation and half truths that circulate about auto insurance. Some of them are so prevalent in our society that they have been accepted as truths for decades. This week we are going to a take a few minutes to list what some of these are and dispel some of the most held auto insurance myths and untruths.
The color of my car affects my insurance rates - This is one of the most common and longest held auto insurance untruths in existence. Outside of personal factors about the driver some factors that are considered about the vehicle are the safety features included and the amount it would cost to repair or replace the vehicle. However the color of the vehicle does not impact your auto insurance rates at all.
Someone else was driving my car so they are responsible for the damages - It does not matter who was operating your vehicle. If someone else crashes your car, your policy will be the one that covers it! Now there are additional coverages you can consider if you regularly have others operating your vehicle which are at the very least a good if not a nearly essential product that consider. A quick conversation can determine if you are in a situation where this additional coverage is something that is right for your situation.
My auto policy will cover items stolen from my car, vandalism or damage that occurs when I’m not driving (like a falling tree). - Again this is false. A auto policy is not blanket coverage for everything to do with your car. The good news here is all of this can be covered and may already be covered on your policy. A basic auto policy covers collisions. The coverage you are looking for is comprehensive coverage. This would cover your car if it is stolen, damaged by a storm or natural event or if it was vandalized. However as for the items inside your car, while those are not covered under your auto policy they should be covered under your home or renters policy. It is important to remember that high priced items are not always covered under these policies so its important to have a conversation with your agent about what is and what is not covered for theft or damages under your home or renters policy and add additional coverages where needed, while your having that conversation make sure you also carry adequate comprehensive auto coverage so your car is covered whether your driving it or not!
Auto coverage will always pay for a rental when I’ve been in an accident - This is 100% unequivocally false. (However that probably means you don’t have accidents on your record so good job!) Car insurance companies do not automatically distribute rental cars to everyone who has had an accident. There is an additional coverage to include this service though and it typically is a very minor addition. As with most other things its insurance it is best to have a conversation with your agent if you are not sure if you currently have rental car coverage or if you know you do not and would like to add it!
Every industry has a lot of myths floating around, insurance is certainly not free from this. Hopefully this can answer a few questions you may have regarding commonly misunderstood auto insurance facts. Anything else that you fear may sound suspect, or if you just are curious about what exactly your current coverage actually includes and how your coverage and rates were determined. Reach out and get a free currently policy review and we can go over your current policy together to determine whether your not your current policy protects your and your family adequately!