vs. Fiction: Uncovering auto insurance
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 insurance myths heard
by some of the more than 13,000 claims
people at Progressive, one of the country's
largest auto insurance companies:
Myth: I bought full coverage so everything's
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: Not necessarily. Very few insurers
actually require this, although some
might. If you decide to use a shop that's
in an insurance company's network of
pre-approved shops you may just 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
Myth: If I lend my car to someone and
he/she crashes it, I’m covered.
Reality: Not so fast. If you or your
friend don't have optional physical
damage coverages, 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. Most insurance companies
require that you notify them or your
agent within a specified number of days.
Generally, you have 30 days to add the
new vehicle to your policy.
Insurance can be complicated, says Chuck
Crist of Progressive. It's not something
people deal with every day. So the more
informed you are, the better choices
To learn more, contact Miday Ins Agency.
to Insurance Buying Guide produced by
the Department of Insurance