Auto insurance doesn’t have to be a difficult or confusing subject, despite how often it can seem that way. You might not be aware of many fascinating facts and details about auto insurance, but knowing them can help you decide what is best for your specific situation. We’ll go over five of the most fascinating auto insurance facts in this blog post that you might not be aware of. To find out more about how auto insurance functions and what kinds of coverage are available to you, keep reading.
1) To assert a claim, you need not be 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.
Claims made against drivers who do not have the necessary level of insurance coverage for the accident are known as uninsured motorist claims. Underinsured motorist claims are made when the at-fault driver does not have enough insurance to cover the full extent of the damages.
In either scenario, your auto insurance provider might be able to cover your losses up to the policy’s maximum. It’s crucial to keep in mind that filing an uninsured or underinsured motorist claim will still have an impact on your rates, so it’s crucial to understand your level of coverage before doing so.
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 due to the insurance company’s perception that you are more likely to be involved in another accident and necessitate them paying out for more claims.
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. Remember that even though an insurance company may increase your premium after a claim, they 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 accidents can still cost you more money even if you weren’t at fault for them. A rate increase shouldn’t be a reason to put off filing a claim, but it’s important to be aware that it could. The best course of action if you want to lower your car insurance premiums is to keep a spotless driving record and steer clear of collisions.
3) Even if you have insurance, you could still face a damage lawsuit.
When it comes to auto insurance, a lot of people believe that they are shielded from any legal action if they have insurance. This is regrettably not the case.
You may still be liable for accident-related damages even with auto insurance. You could be sued for an amount 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 out-of-pocket costs for the accident’s related medical bills, lost wages, pain, suffering, and property damage.
It’s crucial to realize that having car insurance does not always shield you from legal action. For 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 familiar with the state’s regulations governing auto insurance.
4) Insurance doesn’t provide complete coverage
Certain things are not covered by auto insurance. These may consist of:
– Injury brought on by racing or careless driving
– Damage brought on by driving while intoxicated or under the influence of drugs
– Deliberately causing harm to a vehicle
– Natural catastrophes like hurricanes, earthquakes, and floods
– Personal items being taken from the car
– Minor cosmetic damage to the car
It’s critical to realize that although auto insurance is intended to safeguard your finances in the event of an accident, it won’t always provide coverage. Make sure to carefully read your policy, and if you have any questions, ask them. You will then be fully aware of what your auto insurance policy does and does not cover.
5) There are various coverage options
Collision insurance pays for harm to your car brought on by collisions with other vehicles or objects.
Comprehensive Coverage: Comprehensive coverage assists in paying for damage to your car caused by unavoidable occurrences like theft, vandalism, and natural disasters.
Liability Coverage: In most states, liability insurance is necessary. It helps cover any property damage or bodily injury you may cause while driving a car. If you are sued, it also pays for your defense costs.
Uninsured/underinsured motorist coverage: If you are hit by a driver who doesn’t have insurance or enough insurance, you are protected by uninsured/underinsured motorist coverage.
Medical Payments Coverage: In the event of an accident, medical payments coverage 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.