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 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 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
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 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 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 you'll make.
To learn more, contact Miday Ins Agency.
Link to Insurance
Buying Guide produced by the Department of Insurance