Auto insurance can get confusing. You just want to be able to drive and get yourself to where you gotta go. It’s easier to put insurance out of your mind and assume that you’re covered for the what-ifs, but there are a few questions that you should know the answers to when it comes to car insurance. Knowledge is power, especially when you start talking insurance.
So here we go: ten questions about auto insurance and the answers – in fun-sized packages!
1. Is the minimum level of car insurance enough?
Probably not. The limits of car insurance that states require, called minimums, do give you some protection for your car. They might seem like a lot – for instance, Georgia requires $25,000 of bodily injury liability per person, $50,000 of bodily injury insurance per occurrence, and $25,000 of property damage liability insurance. But if a serious accident happens, chances are that those limits will be exhausted quickly, leaving you to take the fall for the remaining amount. So, it’s up to you as far as what limits you want on your insurance, but you may want to consider going above the minimum.
2. Will bundling my home and auto insurance help me save?
Yes, it very well might! Insurance companies often offer a significant discount if you get both your home and auto insurance from them (this is called bundling.) Insurance companies love it when their customers like them so much that they get multiple products from them.
3. If a tree or branch falls on my car, am I covered?
Only if you have comprehensive auto coverage. This is different than the liability insurance required by the state, so it’s important that you know what comprehensive car insurance covers and if you have it. Comprehensive insurance covers your car if it’s damaged by something other than an accident. So, if a tree squishes your car into a pancake, you’d be covered if you had purchased comprehensive insurance.
4. Do I still need to keep my teen on my auto insurance when they go to college?
Yes. Your college student will still be able to access the car when they’re home on breaks – chances are they’ll be begging you to borrow a car, so yes, they need to be on your insurance. You need to make sure your college student is properly insured.
5. Do I need to get rental car insurance from the agency?
Well, that depends on your personal auto policy. You may or may not need to get insurance from the agency – you’ll have to check your auto policy and see if your own insurance carries over to the rental vehicle, and you’ll have to decide what levels of coverage you’re comfortable with.
6. If I’m in an accident and have to rent a car while mine is being repaired, am I covered?
You would have to add rental reimbursement to your policy for a small additional charge for the rental car expenses to be covered. Cars are often in the shop for two weeks following an accident, so it might be worth it to think about getting this extra coverage.
7. What happens if an uninsured driver hits me?
Your uninsured motorist coverage or collision coverage would take care of it if you’ve purchased either of these coverages. Again, these are not included in the minimum liability insurance coverages required by many states, so you’ll have to make sure that you’re fully covered.
8. If I drive a friend’s car, am I covered?
Their insurance would follow the car and kick in if you’re in an accident, but you have to be extremely careful because if their limits of coverage aren’t high and the damage goes above them, your own insurance would come next.
9. And if a friend borrows my car?
The same goes if your friend borrows your car. If they’re just borrowing it a few times, your policy should cover them. However, if they start driving your car more than you do, your premiums could be affected – the premiums are based on the primary driver and the vehicle itself. If they’re borrowing your car and using it more than you are, you should have them added to your policy to prevent any coverage mishaps.
10. Will car insurance cover things stolen from my car?
No. The belongings that you have in your car may, however, be covered by your home insurance or renters insurance, which should follow your possessions regardless of where they happen to be. So, if you have a suitcase in the trunk and it gets stolen, your home or renters insurance would be the best place to start. But you’ll have to check your policy.
Now, as far as things like sound systems or radios go, those are not covered. So, if you’ve tripped out the stereo system in your car, you may want to consider purchasing additional insurance to make sure that it’s covered in case of theft.
Phew. Auto insurance can be tiring. You may have noticed that a lot of the above answers include a fancy form of saying “it depends.” You need to make sure that you’re familiar with your auto policy and the coverage you’ve purchased to know exactly what you are and aren’t covered for. Don’t take any chances when it comes to insuring your vehicle – accidents can become very costly, and you don’t want to find out the hard way that you don’t have as much coverage as you thought.
If you’d like to get some free quotes for auto insurance, we’d love to help you out with that! We can help you do your car insurance shopping. To get started with your car insurance quotes, all you have to do is fill out our quote form or give us a call today!