8 Things to Know About Your Car Insurance

Do you know everything there is to know about your auto insurance? Have you looked over your auto insurance policy lately so that you understand exactly what coverage you have? Well, if you do, then the following facts will not surprise you. However, it is always good to remind yourself about some basic auto insurance facts.

First, remember to not assume that you and your entire family are not insured under your current auto insurance policy. Make sure every member of your family who can operate the vehicle is listed on the auto insurance policy. Also, make sure that if anyone in your household is going to be driving another persons car on a regular basis that you consider getting a “non-owned auto” endorsement that will offer extra protection.

Second, a spouse or live-in partner is not automatically on your auto insurance policy, nor is a spouse automatically taken off in the event of divorce. Make sure that your spouse is named as driver or co-owner. Also, in the event of a divorce, make sure that you both obtain separate policies. Finally, if you have a live-in partner, you may want to avoid problems by getting a joint-ownership endorsement on your auto insurance policy.

The third thing to know about your auto insurance is to make sure that when your children come to a driving age that you put them on your auto insurance policy. Some insurance providers will protect a driver considered a “family member in residence,” but this is not always true. Check with your auto insurance provider to make sure your child is covered.

Fourth, you need to understand why it is probably a good idea to obtain the insurance that your rental car agency is offering. Many people believe that their auto insurance will protect them if they are involved in an accident with a rental car, but it may not be so. Say you are in a collision and your auto insurance provider will only pay the cash value of the car, though the rental agency requires the full value to be paid. That could add up to a significant amount of money you will have to pay. Unless you are absolutely sure about your level of coverage and you have read over every word in the fine print, then you should obtain the extra insurance the rental agency offers.

Fifth, study your personal and business coverage to see if you are protected if a staff member gets into an accident. Sometimes you need staff to run errands in their own cars, but you need to make sure your insurance covers them. If not, then consider a “non-owned” endorsement. Also make sure you are not driving your car for business under your personal policy. Many auto insurance providers do not allow it, so you could be in violation of your policy.

Sixth, do not assume your auto insurance provider gives grace periods for payments. Not always. Some auto insurance providers have no grace periods, so if you are one day late the provider can cancel your auto insurance, which causes you difficulty later.

Seventh, many people believe that their auto insurance provider will inform them if anything changes or if their needs change. They probably won’t. It is ultimately your responsibility to make sure you have the correct coverage. So whenever there is a change happening in your life, you should contact your auto insurance provider right away.

Finally, you may think you do not need auto insurance if you are not a car owner, but if you sometimes drive you should consider it. Relying on another person’s auto insurance does not mean you will be getting the right amount of coverage for you.

Making sure you understand even these nuances of your auto insurance coverage can mean all the difference in your overall insurance experience. Be prepared in case anything happens so that you have the right amount of coverage.

8 Things to Know About Your Car Insurance

Insurance Resources

Insurance Articles