Car Insurance Myths

The truth behind common car coverage myths.

Because many people are unfamiliar with the insurance industry, misconceptions abound.  This is certainly true when it comes to auto insurance.  To ensure that fake facts do not affect your coverage decisions, here are some of the most common myths debunked.

Myth 1: State Auto Minimums are Enough

Every state in the country requires drivers to carry some minimum about of auto liability insurance.  However, these minimums are not necessarily enough to cover the full cost of an auto accident.  Oftentimes, state-minimums will only cover a small portion of accident costs, leaving the responsible driver to pay for the remaining expenses out-of-pocket.  To ensure that you have the comprehensive liability coverage that you need, insurance experts recommend carrying a minimum of $100,000 bodily injury protection per person, and $300,000 per accident.

Myth 2: Auto Coverage Follows the Driver

If someone is borrowing your car and they get into an accident, then you may assume that the driver’s insurance will cover the costs associated with the crash.  However, most states dictate that the policy that insures the vehicle is the primary insurance in this situation.  This means that the car owner’s insurance, not the driver’s, is responsible for accident costs.

Myth 3: Auto Insurance Covers My Car During Professional Use

If you are self-employed and use your car to complete business purposes, then your personal insurance may not offer you the coverage that you need.  Many personal auto policies specifically exclude coverage when the car is being used in a professional capacity.  You may need to secure a commercial vehicle insurance policy to secure the coverage that you need.

Don’t believe these common car insurance myths.  Do you need help securing the right auto insurance to address your needs?  If so, then contact the experts at Pierce Insurance Group.  We are ready to get you the coverage that you need today.