How well do you know your auto insurance? What have you heard over the years that might be fact… but it could be fiction?! Below are my top 4 myths I’ve heard, for a few more, check out the following source from the Insurance Information Institute https://www.iii.org/article/8-auto-insurance-myths
- If I let someone else drive my car, their auto insurance will cover any damages or injuries if they are in an accident.
- In Utah, the auto insurance policy that covers the vehicle is going to be the primary insurance to pay for damages/injuries. If you let a friend or family member drive your car, your insurance carrier is responsible for damages caused in an accident, regardless of who is driving. They may get a ticket, you might have them pay your deductible, but your auto insurance will suffer due to any accident they cause!
- You only need the state’s minimum requirement for auto liability insurance.
- I hope that none of you think this is true. Whether you think insurance is good or bad, when the rubber meets the road and you cause an accident, you do NOT want to have the minimum coverage. If you purchase the minimum, you should be expecting to pay out of pocket for damage/injuries you cause.
- A Insurance will always recommend at least $50,000 of bodily injury protection per person and $100,000 per accident but would love to see you choose higher amounts. If you have any substantial assets to protect in the event of a lawsuit, you should consider higher limits and an umbrella policy.
- Your credit does not impact your auto insurance rate.
- Your insurance score which is derived from your credit history, will impact your rates! A good credit score has been a good indicator of how well one manages their financial affairs and is linked to whether someone is more likely to file an insurance claim. Many, if not all, insurance companies take it into consideration when you want to purchase, change, or renew your auto insurance coverage. People with good credit (and good insurance scores) will often end up paying less for insurance.
- Personal auto insurance also covers business use of your car.
- If you are self-employed and use your vehicle for business purposes, your personal auto policy may not protect you. It is important to make sure you have business use on your personal policy or purchase business vehicle insurance. Check with your agent today to see if you are covered!
These are just a few insurance myths that most people have heard. If you have a question on any of these myths, please don’t hesitate to call 801-825-3887 or email email@example.com!