Common Car Insurance Myths

When you are going to buy car insurance, it’s necessary to understand the factors that affect your car insurance policy rates and coverage.

Car insurance can help protect you, your passengers and your vehicle from many setbacks. But there are some myths about car insurance that can be problematic. At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, we give you five common car insurance myths:

Myth 1. If other people drive your car, their auto insurance will cover them in the event of an accident:

In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the owner’s insurance company must pay for damages caused by an accident, regardless of who is driving. Policies and laws differ by state, so make sure you understand the rules before allowing another person to drive your car.

Myth 2. Liability insurance coverage that meets minimum legal requirements offers adequate protection:

Minimum liability limits may not be enough to cover expenses if you accidentally injure someone or damage their property with your car. Most states require liability coverage by law and set minimum limits on the two types of liability coverage that you must purchase:

- Bodily injury liability: May help pay for legal fees, medical expenses and lost income compensation for other people if they're injured in an accident you cause with your vehicle. The per-person limit applies to each person involved the accident. The per-accident limit applies to each accident you cause.

- Property damage liability: May help pay for someone else's belongings (their car, their mailbox or their front porch, for example) if you accidentally damage them with your vehicle.

Myth 3. By not filing a claim with your car insurance company, you can keep them from finding out about the accident, and your rates will stay where they are:

If you get into an accident with another driver, that driver may file a claim for damages or injuries. If they do, it will only be a short time until the injured party's insurance company files a claim against you and your insurance company. Once this happens, your premiums may increase. Additionally, if you were issued a ticket as a result of the crash, it can appear on your driving record and trigger a premium increase.

Myth 4. If your car is totaled, insurance will pay for you to buy a new car:

In a covered total loss, your insurance payout typically takes depreciation into account. Coverage that helps protect your vehicle (for example, comprehensive coverage or collision coverage) typically has a limit equal to the actual cash value of your car. According to the Insurance Information Institute (III), insurers determine the value of your car by referring to guides that list depreciation values for vehicles.

If you drive a new car, however, some insurers offer additional coverage to help protect your investment. New car replacement coverage may allow you to replace a new vehicle that's totaled in a covered loss with a new vehicle of the same make, model and equipment. This type of coverage may only apply, however, if the vehicle is no more than a couple model years old.

Myth 5. Comprehensive coverage is all encompassing:

Comprehensive does not cover all damage to your vehicle, typically extends only to certain perils, things like theft, fire or natural disasters. Think of comprehensive coverage as a way to help protect your car if it's damaged in an accident that's not a collision.

If your car is vandalized, comprehensive may help pay to repair it. But if your car is damaged when you hit another vehicle, comprehensive coverage would not apply. (In that instance, you'd need collision coverage to help pay to repair damage to your car.)

Remember that a car insurance policy may help protect your wallet, your vehicle and even offer peace of mind. Contact us for more Information, At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, we can help you choose the coverage that's right for your needs.

For more Information contact us: (706) 884-5006 or (770) 969-5666

Please visit us: www.go-guardian.com