Understanding Insurance Policies

Three Common Auto Insurance Misconceptions Exposed

5 October 2016

Samantha Reynolds

Driving a car can be among the more routine tasks that you do on a regular basis, and this can make it easy to overlook the substantial risks that accompany driving. Auto accidents can result in serious injuries and major financial losses. To protect yourself against these risks, you will need to make sure that you have an active auto insurance policy. However, it can be a fairly common issue for individuals to believe some of the more commonly held notions about auto insurance policies.

Myth: Your Auto Insurance Will Automatically Provide A Rental Car

In the event that your car suffers extensive damage and needs to be repaired, it is commonly assumed that the insurance company will provide a rental car while this work is being done. Yet, this is not a benefit that is automatically included in every policy. To ensure that you have access to a car while your vehicle is being repaired, you should consider adding separate coverage for rental vehicles. While adding this coverage may increase the expense of your monthly premiums, it can be essential for those that will be unable to go without their vehicle for several days or longer.

Myth: The Insurance Company Will Only Check Your Driving Record

It can be easy for individuals to overlook the various factors that are considered by the insurance when issuing a policy. In fact, it is common for individuals to assume that their driving record is the only factor that the insurance will closely review. However, it is common for insurance companies to also review a person's credit history. This may seem invasive, but this is done to help determine a person's sense of responsibility and risk taking tendencies. Not surprisingly, those with better credit histories will often be able to secure lower premiums for their insurance policies.

Myth: Having Your Vehicle Totalled Always Mean You Will Have To By An Older Model Vehicle

If you have the unfortunate luck of being involved in an automobile accident that severely damages your vehicle, it is possible that the insurance will declare your vehicle a total loss. When this happens, it is commonly assumed that you will always be given less than the value needed to replace the vehicle. However, it is possible to choose an insurance policy that provides you with the replacement value for your vehicle. These policies are often more expensive, but they can be more than worth it if you are faced with a need to replace your vehicle following a serious accident.

For more information, contact an auto insurance company like Insure With U.S.

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