Auto accidents can be an issue that many people will find themselves facing. Due to the sizable costs of damages and injuries, individuals that are involved in these accidents can quickly find themselves facing extremely expensive liabilities. While auto insurance can be extremely effective for reducing these liabilities, it is a form of protection that is often poorly understood by drivers.
Myth: Insurance Only Covers Damages To Your Car
It is often assumed that your auto insurance will only cover the damages that occur to your car. However, liability only policies will only pay for the damages that occur to other cars. Comprehensive insurance can be effective for reducing this risk as it will pay for damages that occur to your car. Furthermore, it is common for comprehensive auto insurance to provide additional coverages. For example, this type of policy may pay for a rental vehicle, lost wages and other costs incurred by the accident. Additionally, comprehensive policies may also offer protection against the theft of the vehicle, which can prove invaluable if thieves ever target your vehicle. By carefully reviewing the various items covered by the insurance, you will know which policy will offer you the best coverage for your premium payments.
Myth: Insurance Companies Can Only Review Your Driving Record When Issuing A Quote
Individuals are often confused about the factors that can be considered when preparing an auto insurance quote. While it may seem as though these insurance carriers would only consider your previous driving history, there are many other factors that they may review. These can include criminal history, credit scores and other background information as this can help the insurance company to better weigh the driver's decision making and risk taking tendencies. You can request a list of these considerations fro insurance providers so that you are fully informed about the personal information that they are using to issue your policy. While you may not like the idea of this information being considered, it can be essential for allowing the insurance to keep premium rates as low as possible.
Auto insurance can be critical protection for anyone that plans on driving on public roads. Without this form of protection, you could find yourself facing extensive liabilities from the costs of auto accidents and other threats. By appreciating the fact that you can purchase comprehensive policies that cover far more than vehicle damage as well as knowing the factors that the insurance company is likely to consider when issuing a policy, can help you to be a wise and informed insurance consumer.