If you are a safe driver, you wouldn’t worry much or at least paid attention to some of the most unusual misconceptions about auto insurance. However, this doesn’t mean that you’re not going to read the fine print, terms, and policies of your insurance coverage. And since no one knows when accidents do happen, this could put you on a hot seat because of the sheer lack of knowledge.
With that, we would like you to pay attention with your insurance coverage and to understand what your policy can do and can’t do for you.
Automatic car rental insurance
If you had an accident, you could either commute or get a rental vehicle while waiting for your car to be fixed. If you choose to rent a vehicle, most insurance companies don’t provide such coverage automatically. But then again, you can also purchase or add this coverage on top of your existing policy. The best way to approach this issue is to determine if purchasing this coverage outright will save you money, or adding it after the accident saves even more.
Uninsured motorists and hit-and-run accidents
Protection from these two scenarios may or may not exist on your current policy. You may have to talk to your insurance provider if you are automatically covered in case the at-fault driver suddenly disappears. If your area has a high incidence of hit-and-run cases, you might want to add this coverage right away.
Insurance coverage regardless of the vehicle you’re driving
This is a common assumption by policyholders that they are protected no matter what type of vehicle they are using. However, a typical auto insurance policy only the protects the vehicle which means that if your sister had an accident, the insurance coverage will take effect. Again, be sure that she is one of the authorized drivers stated in the policy, or you could seriously face troubles.
Car customizations are automatically covered
If you like pimping your car such as upgrading your stereo system, adding a fancy spoiler, boosting the engine’s performance and so on, such modifications are not automatically covered. There are add-on coverage you can purchase to protect your work and investment. This will require you to speak to your insurance agent about the matter.
Your insurance company will take care of your towing
In case of an accident and your car needs to be towed somewhere, your insurance company may or may not pay for the towing services. Just to make sure, review your insurance policy who is going to pay for the towing. Alternatively, if it is not included, you can always request to add it up, which is usually just a few dollars each month.
Phone and other gadgets inside the car were stolen. My insurer will get me a new one.
In most cases, personal gadgets or accessories are not included in insurance coverage. On the other hand, if the entire vehicle was stolen, you can include all those items in your insurance claim and possibly receive compensation.
If your car was wrecked totally, your insurance provider will take care of your loan.
The answer is yes if you have the GAP insurance. On the other hand, you need to take care of your loan and at the same time use the public transportation system or get another vehicle. If you do not want this situation to happen any moment soon, you may have to acquire GAP insurance, which will take care of your loan balance if your car is totaled.
