Do thieves only target new cars? Do sports car drivers get more traffic tickets? Does the color of your car really affect your auto insurance rates? Countless questions swirl as a result of common insurance myths. Chances are you have heard some of them. What have you been told about full coverage auto insurance that might not be true? Continue reading as we confront some of the most common insurance myths and uncover the truth you need to know about.
Myth #1: Full Coverage Car Insurance Covers Everything
Before we even address this myth, it might surprise you to know that there really isn’t any such thing a “Full Coverage” insurance. Though the term ‘full coverage’ implies a broad range of coverage, it actually is most often referring to two specific types of coverage – collision and comprehensive – that provide protection for a policyholder’s vehicle in the event of an accident, natural disaster, or other covered event. A driver is said to have full coverage if he or she has collision and comprehensive – even if it is in addition to a bare bones liability policy.
If you want a complete protection, you will need collision and comprehensive insurance, as well as sufficient liability limits to protect yourself. You may also want to talk with your agent about including addition policy riders, such as loan/lease gap coverage, towing coverage, vehicle customization, and rental car reimbursement, which are not always automatically included. Finally, most auto policy losses are settled on an actual cash value basis, and also using aftermarket parts for repairs. Please be sure to ask your agent if anything else is available with your specific insurance carrier.
Myth #2: All Car Insurance Policies Cover Theft and Vandalism
Theft and vandalism fall under the comprehensive portion of your auto insurance. If you have full coverage, chances are your insurer will reimburse you for vehicular damages or losses caused by theft or vandalism. If you have collision protection only, you will likely find yourself responsible for your own losses.
Myth #3: If I Really Needed Full Coverage, It Would Be Required by My State
Unfortunately, the state of Wisconsin is not concerned about losses to your vehicle. They also have very little concern for your well-being. Wisconsin law requires a driver to carry a minimal amount of insurance coverage for the protection of others in the form of Bodily Injury and Property Damage Coverage, along with a minimal amount of coverage for uninsured motorist. Currently the State of WI requires bodily injury limits of $25,000 per person/$50,000 per occurrence and $10,000 of property damage or $60,000 of assets on a signature bond. According to the Insurance Research Council, on a nationwide basis, 13% of drivers are uninsured.
You (and your lender, if applicable) are the only people with any financial interest in the drivability and condition of your vehicle. If you want to avoid losing the money you have invested in your vehicle, you will need full coverage auto insurance.
Myth #4: Full Coverage Is Expensive
Carrying Comprehensive and Collision Coverage may not cost you as much as you may think. In fact, if you choose a higher deductible, it may be much less than you might have first expected. While liability-only coverage will always be more affordable, it would leave you paying for the loss out of your own pocket.
Finding full coverage at a reasonable price is as simple as shopping around for coverage with a trusted independent agent. At Thiel Insurance Group, we help Fox Cities and surrounding area drivers compare rates from multiple insurers and find ways of lowering the cost of full coverage auto insurance. If you are in search of full coverage for your vehicle, contact one of our offices to request your free quote. We look forward to serving you soon.