It isn’t hard to understand why there are so many common car insurance myths. Between the cumbersome language of an auto insurance policy and the over-simplified nature of most auto insurance commercials, the truth about your car insurance gets lost somewhere in the mix.
One of the most common myths around auto insurance involves the term “full coverage”.
Myth: I Have Full Coverage; Therefore I Won’t Have to Pay Anything Out of Pocket in an Accident.
Reality: Wrong. The term full coverage means different things to different people. When people say they have full coverage it can mean they have insurance that is a combination of the following: PIP/No Fault, minimum bodily liability, property damage, collision, and comprehensive coverage. If you want true full coverage you also need to request uninsured/underinsured motorist, medical payment, and rental reimbursement coverage.
Still feel confused about your car insurance? Don’t worry, you are not alone. The National Association of Insurance Commissioners conducted a study to see how confident people were in understanding their auto insurance policy and it turns out that many of us are not confident about what we know.
- Most of us do not understand the role our credit scores play in affecting our car insurance rates.
- We really do not understand coverage limits like 100/300. Most of us think they look like algebra, but in reality those numbers are very important. The first number represents your bodily injury per person that your insurance will pay and the second is bodily injury per accident. If these numbers are higher the less likely you are to be sued personally.
- When it comes to personal property stolen out of your car, most of us don’t realize its not covered under your auto insurance.
Understanding your car insurance policy can seem daunting. But the good news is we are here to help. At Jim Dodson Law, we are experienced in helping victims of auto accidents. We understand what types of auto insurance will best protect you and your loved ones. Download our Free Auto Insurance Review Form and we will look over your auto insurance policy to make sure you and your loved ones are protected. Still have more questions? Request a copy of our book Uninsured Motorist Coverage--Don't Leave Home Without It! We wrote this book to help answer any questions you may have about uninsured motorist coverage and what you need to feel safe on the road.
If you have already been in an accident and need our help negotiating the best recovery for your injuries, call today. Every consultation is free and we only get paid if your case settles. We have assisted victims of auto accidents all over the state of Florida and we are here to stand up for your best interests in gaining a proper settlement or court award.