The subject of auto insurance doesn't have to be difficult or complicated, even though it can frequently seem that way. You may be unaware of several fascinating facts and information about auto insurance, but being informed about them will allow you to make the best decision possible given your unique situation. We'll cover five of the most fascinating auto insurance facts in this blog post that you may not be aware of. To find out more about how auto insurance functions and the different types of coverage you can choose from, keep reading.
1) You can file a claim even if you are not at fault.
You might be surprised to learn that you don't have to be at fault to file a claim if you have auto insurance. Even if you were the accident victim, you are still eligible to file a claim. An "underinsured motorist" or "uninsured motorist" claim is what this is.
Drivers who do not have enough insurance coverage to cover the accident may face uninsured motorist claims. Underinsured motorist claims are made when the at-fault driver's insurance is insufficient to fully cover the extent of the damages.
In either situation, your auto insurance provider might be able to compensate you for your losses up to the policy's maximum. Before submitting an uninsured or underinsured motorist claim, it is crucial to understand your level of coverage because doing so will still have an impact on your rates.
2) If you file a claim, your premiums may increase.
Your rates will probably increase if you are in an accident and file a claim with your auto insurance company. This is so that they won't have to pay out on as many claims since they think you have a higher chance of getting into another accident.
Insurance companies frequently increase rates for drivers who have made claims to balance this increased risk. The rate increase may or may not be noticeable, depending on the seriousness of the claim and your driving history. Just keep in mind that, even though they might increase your premium after a claim, an insurance company cannot refuse to provide you with coverage unless you are in serious financial trouble or otherwise break the law.
It's crucial to realize that even if an accident wasn't your fault, it might still end up costing you more money. It's important to be aware that a rate increase might be a reason to postpone submitting a claim, even though it shouldn't be. If you want to lower your auto insurance premiums, it's best to keep a spotless driving record and steer clear of collisions.
3) Even if you have insurance, you could still be the target of a damage lawsuit.
Many individuals believe that their auto insurance shields them from any driving-related legal action. That is regrettably not the case.
Even if you have car insurance, you might still be liable for any damage caused by an accident. You could be sued for a sum greater than what your insurance will pay, depending on the laws in your state and the specifics of the case. This implies that you might be responsible for covering any related out-of-pocket costs for medical bills, lost wages, pain and suffering, and property damage.
It's crucial to realize that even with car insurance, you might not always be safe from legal action. If you want to have the best understanding of your legal rights and obligations in the event of an accident, it is best to speak with a lawyer who is knowledgeable about the state's regulations governing auto insurance.
4) Insurance does not provide all-encompassing protection
Certain things are not covered by auto insurance. These might consist of:
- Accidents resulting from racing or reckless driving
- Damage brought on by drunk or drugged driving
- Intentional vehicle damage
- Natural disasters like hurricanes, earthquakes, and floods
- Theft of personal belongings from a vehicle
- The car's exterior only sustained minor damage.
It's crucial to realize that coverage isn't always ensured even though auto insurance is designed to safeguard your finances in the event of an accident. Completely read your policy, and if you have any questions, let us know. Your auto insurance policy's coverage and exclusions will then be fully disclosed to you.
5) The options for coverage are varied.
Collision insurance covers damage to your car caused by collisions with other objects or cars.
Comprehensive coverage helps with the cost of the damage that theft, vandalism, and other unavoidable events like natural disasters cause to your car.
Liability Coverage: The majority of states mandate the purchase of liability insurance. It helps shield you from any harm to people or property you might cause while driving. If you are sued, it also pays for your defense expenses.
If you are hit by a driver who does not have insurance or does not have enough insurance, you will be protected if you have uninsured/underinsured motorist coverage.
Medical Payments Coverage: Should an accident occur, this insurance assists in covering your and your passengers' medical expenses.
Rental Reimbursement Coverage: If your car needs to be repaired after accident-related damage, rental reimbursement coverage will assist in defraying the cost of renting a substitute vehicle while yours is being fixed.
