As a driver, you probably think you have a pretty good idea about the way car insurance works. After all, you’ve probably had an insurance policy as long as you’ve been behind the wheel, so it makes sense that you would know a thing or two about your coverage. Today, though, we are taking you a little deeper into the world of car insurance and revealing 5 important details about your insurance protection that you may not be aware of.
Comprehensive Insurance is Not Full Coverage
The word comprehensive sounds all-inclusive, but don’t be deceived; comprehensive insurance is not the same thing as full coverage. In fact, comprehensive is a term use to describe a particular type of protection you can add to your policy that pays for damages to your vehicle caused by non-accident related events. It complements collision coverage, which pays for damages to your vehicle caused by an accident. Examples of claims that would typically qualify for payment under comprehensive coverage include damages caused by wind, fire, vandalism, or hitting an animal on the highway.
Your Life Savings Could be Wiped Out without Enough Liability Protection
You work hard, save, and expect to enjoy the fruits of your labor. Imagine waking up to find yourself facing a half-million-dollar lawsuit and only a fraction of it covered by the low limits on your liability insurance. Just like that, you could face the liquidation of your assets, seizure of your bank accounts, and perhaps garnishment of your future wages to pay the damages you are legally responsible for. Insurance agencies know all too well the damage a liability suit can cause a driver, and how higher coverage limits can help families avoid losing everything.
Insurance Companies Verify Everything You Tell Them
When you apply for coverage, you are asked a litany of questions about yourself, your vehicle, and your driving history. The answers to those questions help agents produce more accurate quotes, but be aware: Insurance companies do not take your word for it. Once you officially apply for coverage, the insurer can pull a wide range of reports on you, including your driving record, your CLUE report, your credit report, registration information, and more. They can tell how many miles you are putting on your vehicle, how many tickets you’ve had, whether you’ve made claims in the past, if you pay your bills on time, and much more.
It’s Possible to Void Your Coverage
Your insurance agent’s job is to make sure you are offered all the coverage you need to provide adequate protection on the road. However, there are some things you could do to void your coverage. For example, if you decide to drive your vehicle part-time for a ride-sharing service, you might not be covered during those times. Many policies exclude coverage when drivers use their cars to transport goods or people for hire.
Your Agent is a Rich Source of Helpful Information
As an independent car insurance agency, we know a lot about our local community, the people we serve, and the insurance companies we contract with. We are here to serve you, offer you advice, and provide ongoing support as your coverage needs change over time. We can help you find out what to do after you get a ticket, explain the claims process after a wreck, and clue you in on substantial discounts you could be eligible for now or in the future.
If you have questions or doubts, contact Imes Insurance Associates.