8 Myths of Auto Insurance
Rising Auto Insurance rates will be here for the next few years! Here are 8 Myths of Auto Insurance to help your understanding of the industry:
8 Myths of Auto Insurance
- Can your personal auto insurance be cancelled for glass claims?
- Yes!
- Glass claims are comprehensive claims and carriers are starting to look more closely at these claims because frequency leads to severity and the cost for windshields has increased dramatically.
- Real example from our agency:
- Customer has 2023 BMW X3, got crack in windshield & had it replaced, Cost to replace – $2,376.54 Customer’s annual premium for 2 cars including the BMW X3 – $2,757.55 Vendors market the windshields as “free.” They are not, it is still a comprehensive claim with just a $0 deductible.
- Someone hits your car, and they don’t have insurance. Will you have to pay anything out of your pocket for your uninsured property claim? If yes, how much?
- Yes!
- $200 – This is statewide, does not matter the carrier.
- Your laptop is stolen from your vehicle, would that be covered by your auto insurance?
- No! If it is not part of the vehicle, it is a homeowners or renters claim and would be covered under the personal property/contents portion of that policy. Your homeowners/renters deductible would apply.
- Should you call the police if you are involved in any type of auto accident?
- Yes! Whether it be a hit and run, parking lot incident, side swiped by an 18-wheeler on the interstate and the 18-wheeler keeps going (this has happened to 2 of our customers in the past 2 months), even if you hit another car, always call the police and take pictures/video of the accident scene! The police will document the incident and give you an accident report. These reports are helpful when carriers are trying to determine who is liable for the damages. Otherwise, it is he said, she said.
- If your child takes driver’s training and then gets a speeding ticket or in an accident, can you keep the driver’s training discount?
- No! The insurance carrier will most likely remove it at the next renewal and add an accident surcharge. The surcharge for a teen driver in an at-fault accident is hefty!
- You have a work car; can your spouse drive it and be covered?
- Your spouse could potentially NOT be covered under your work vehicle. Some policies only cover listed drivers for specific business use. If your spouse is not listed, the claim could be denied. Could you file the claim under your personal auto insurance? Potentially – you would need to add a hired and nonowned endorsement to your personal policy.
- Your golf cart is registered for road use. Do you have to purchase auto insurance for it?
- Yes!
- You can either add it to your personal auto policy or purchase a separate golf cart policy. Tip: You can even add your golf cart policy under your personal umbrella if you have the right golf cart liability limits.
- True or False – you should work with an independent insurance agent so they can provide multiple quotes with different carriers and find you the best one to fit your needs.
- TRUE!
- Who else will provide you with quality advice and Auto Insurance Options! Get Covered!