By L Wood |
|
Most people understand that they need auto insurance. In fact, it's
the law, if you drive a car, it has to be insured and the
penalty for driving without insurance is pretty severe. However,
insurance policy wordings are not easy for everyone to
understand. And what you don't know about auto insurance can
hurt you. Here is some clarification of a few things that are
commonly misunderstood about auto insurance.
Personal
property in your vehicle is not covered on an auto insurance
policy. Auto insurance policies provide coverage for
automobiles. For instance, items like compact discs, laptop
computers and cell phones are not covered on an auto insurance
policy. Items like these can be covered on a property insurance
policy. What this means is that if the contents of your car,
like the items listed above, are damaged in an accident or lost
by fire or theft while in your car, you'll need to file a claim
for your contents on your property insurance policy.
If
you loan your car, you've also loaned your insurance. If your
friend is involved in an accident while driving a car borrowed
from you, there is good news and bad news. The good news is,
your insurance company will most likely cover the accident
(except in extenuating circumstances like if the driver isn't
licensed, or was impaired at the time of the accident, then
coverage can be denied or limited). The bad news is, your
insurance company treats the accident as if you were driving
your car. This means that the accident your friend had while
driving your car, is on your insurance record. It's as if you
were driving the car yourself. Best advice, don't loan your car
out.
When you change insurance companies, you MUST
officially cancel your old policy. With most insurance
companies, you can request the cancellation of your policy at
any time by notifying them in writing stating the date you wish
your policy to be cancelled. So many people misunderstand this
and presume that if they decide not to renew a policy, all they
have to do is ignore the bill. DON'T DO THIS! Unfortunately, the
insurance companies most times will send you another bill and
then when the premium isn't paid, they will register a
cancellation due to non-payment of premiums on your insurance
record. Having a non-payment cancellation on your insurance
record is serious stuff and getting this straightened out after
the fact can be a real hassle. What you'll want to do when you
change insurance companies, is request cancellation of your old
policy in writing. Make sure you watch the dates (the date
you're canceling one policy and starting another policy) so that
you have continuous coverage while making the change between
insurance companies. You don't want to be without auto insurance
for a day or so while you make arrangements for new insurance.
The best advice on any of these things if you're not sure is to
contact your broker and ask for their advice. Doing this will
ensure that you have the coverage you need when you need it the
most and it could save you a head ache or two down the road. |
|
|
|
|
|
