“I don’t have to list all of the members of my household on my auto policy.”
Yes, all household members need to be listed on your auto policy, even if they rarely drive your vehicle. Failing to list residents can lead to claim denials, policy cancellation for misrepresentation, or reduced coverage if they are involved in an accident.
“I have comprehensive coverage, so that means everything is covered.”
In insurance terms, “comprehensive” refers to a specific type of coverage for damage to your car from non-collision incidents such as theft, animals, and fire. To ensure you are covered for other types of accidents, be sure to carry both comprehensive and collision coverage.
“If another person drives my car and has an accident, his or her auto insurance will cover the damages.”
In most states, the auto insurance policy covering the vehicle being driven is considered the primary insurance. This means the car owner’s insurance company must pay for the damage caused by an accident, regardless of who is driving.
“I need to save money, so I’ll only get the state-required minimum coverage.”
Many people believe that the only way to save on their auto insurance premiums is to carry the minimum required coverage, which may not fully cover costs if you need to file a claim. Having more coverage than required can help you save money in the long run.
“Insurance companies can charge whatever they want!”
When insurance companies raise their rates, they must get approval from state regulators in most states, which helps prevent the use of unfair rating factors. While every insurance provider uses a different formula to determine your rate, they typically consider factors such as vehicle type, location, and driving history.
“Incorrect information won’t affect my policy.”
Providing your insurer with accurate information is essential to ensure you receive the correct rate and coverage. If you intentionally provide incorrect information, your policy could be canceled, claims denied, and you may even be subject to fines or legal consequences.
Please contact our team at Court Street Insurance for assistance with separating fact from fiction. We are always here to help!
