You may not be a stranger when it comes to auto insurance; however, it does not mean that you cannot learn more. Unfortunately, false information is abundant when it comes to insurance, and the worst part is that some people cannot decipher this false information. Make sure you are informed so that you can also ensure you have the right coverage.

Claims Mean a Premium Increase

One of the most longstanding myths surrounding auto insurance is the idea that whenever a policyholder files a claim, they are guaranteed to expect an increase in their policy premium. Yes, this scenario can occur, but it is not always the outcome. Insurance companies raise premiums based on risk. 

Therefore, if the driver poses a greater risk based on the findings of the claim, such as an accident involving speed, they may see a policy increase. Yet, if the driver is hit by an uninsured driver or involved in another situation that is not their fault, they may file their claim, and see no change in their premium.

Coverage Limits Must All be the Same

All auto insurance policies typically offer different types of coverage, such as liability coverage and uninsured motorist coverage. Some people assume that if they select a $25,000/$50,000/$25,000 limit for their liability coverage, their uninsured motorist coverage has to be of the same value; this is not the case. 

You can vary your limits based on the specific coverage, which means you can have higher and lower coverage based on your needs. However, keep in mind that states typically have minimum coverage standards that they impose on drivers, so you need to ensure the coverage limit at least meets this minimum. 

Only Collision Coverage is Necessary

Do not believe the idea that collision coverage will provide your vehicle with 100% protection. As the name of this coverage suggests, this protection is only available in the event of a collision, or an accident. 

If your car were to be stolen, vandalized, or have a tree fall on it, you would only be able to get insurance assistance if you also carried a comprehension component on your policy. Make sure you have the coverage components you need to ensure your car is totally protected.

If you have a question about your coverage, it is always a good idea to speak with an agent. Whether you have a question about a myth, or you need to adjust your coverage, an agent is more than happy to assist with auto insurance coverage.