The Importance of Understanding Your Auto Insurance Coverage

The importance of understanding auto coverageMany auto insurance companies lure you into picking them to be your insurance provider through funny commercials. These marketing attempts are getting you to sign the dotted line, but what does this mean in regards to coverage? If you aren’t careful when choosing your auto insurance, you could find yourself in trouble later.

Does Marketing Impact Your Coverage Decisions?

Don’t be fooled into choosing your insurance based on popular television commercials. A recent survey done by Erie Insurance asked respondents what they thought about ads and how they influenced their decisions.

Overall, coverage was the most important thing to those surveyed. However, these same individuals admitted that the appeal of car insurance commercials that focused on price have caused them to forget about coverage choices that affect how well they are protected. Shocking?

Although insurance policies may be wordy and overwhelming, be sure to read your policy and be aware of loop holes that may put you in a difficult situation later.

There May Be Loop Holes in Your Car Insurance Policy.

It is extremely important to be aware of some of the potential loop holes in auto policies.

  • Are you covered if your car is stolen? What if it was stolen when you left it running and unlocked?
  • Will you be covered from damage caused by a deer hitting your car?
  • What about damages from natural disasters and storms such as floods or tornados?
  • What if you cause an accident and both passengers in your car and the other vehicle are injured?
  • Does your insurance cover medical bills if you are at fault?
  • What if someone else is driving your car and gets into an accident- are you covered?

These are all questions that you may want to ask your insurance agent prior to choosing a policy that works for you. The last thing you need is to find yourself in a situation where you aren’t covered and owe large sums of money for medical bills and/or auto repairs.

Why Your Decision is Important.

As a car owner, it is your responsibility to understand and choose the right coverage for you. According to the same survey mentioned above, many people don’t know what kind of coverage they have or need. Additionally, 48% of those surveyed thought liability or comprehensive insurance covered damage they caused to their vehicle if it hit another object. Wrong. That would be collision coverage.

If you don’t fully understand your auto policy, it is obvious from the survey results that you aren’t alone. But that doesn’t mean you shouldn’t figure it out before your find yourself in trouble.

I’ve been involved in an accident, and I’m already in trouble from not reading the fine print.

If you have found yourself in a situation caused by not reading the fine print of your insurance policy, you may need to seek help to reconcile your situation. This is especially true in the case of bodily injury cases or cases where your claims adjuster is rushing you to make a decision.

The personal injury team at O’Keeffe O’Brien Lyson Foss can help you sort out your options to make the best decision for your current situation. Contact us today.

Image courtesy of John/Flickr