Insurance Myths

Like a teenager eager to try a new video game, playing before reading
the rules, many drivers buy car insurance without really understanding what they’re buying.
“In the rush to feel ‘covered,’ drivers can skip the details,” according to Chance Smith with ABC INSURANCE
SRVCS in FARMINGTON whose agency offers coverage from well-known carriers like Progressive.
“That can lead to frustration.”
Smith has uncovered five of the most common car insurance myths and the reality behind them.
Myth: I bought “full coverage” so everything’s paid for.
Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory.
There are a lot of other coverage options out there, so select what you need and can afford based on
your personal situation.
Myth: I need three estimates before my wrecked vehicle can be repaired.
Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to
use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get
an estimate from that shop.
Myth: My insurance premium always increases if I’m involved in an accident.
Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident
is combined with other information about you, your car and your driving history to determine your
rate.
Myth: If I lend my car to someone and he/she crashes it, I’m covered.
Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to
your vehicle generally won’t be covered.
Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified
number of days. Generally, you have 30 days to add the new vehicle to your policy.
“Insurance can be complicated,” says Smith. “It’s not something people deal with every day, but your lo-
cal independent insurance agent can help you stay informed so that you can make more informed decisions.”
ABC INSURANCE SRVCS, in business since 1999, is located at 3501 E MAIN, STE E. Independent
agent Chance Smith provides expert advice and personal service and can be reached at 505-324-8521
or at chance@nmcarins.com.


Leave A Comment...

*


*