Personal & Commercial

Fact vs. Fiction: Uncovering auto insurance myths

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying.

In the rush to feel “covered,” they can skip the details. That can lead to frustration.  Following are five common insurance myths:

Myth: I bought “full coverage” so everything’s paid for.

Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.

Reality: No.  The insurance company is required to work with the repair shop you select. If you decide to use a shop that’s NOT in the insurance company’s “network” of pre-approved shops, you may have to get an estimate from that shop.

Myth: My insurance premium always increases if I’m involved in an accident.

Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth: If I lend my car to someone and he/she crashes it, I’m covered.

Reality: Not so fast. If you or your friends do not have optional physical damage coverage, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.

Reality: No. Insurance companies require that you notify them or your agent within a specified number of days. Depending on the Company, you have 14 or 30 days to add the new vehicle to your policy.  Check your policy to see how many days your company provides.