Uncovering Auto Insurance Myths

Saturday, March 1, 2008

aC vs. Fallacies Uncovering Auto Insurance Myths (NAPSA)—Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what theyre buying. In the rush to feel “covered,” they can skip the details. That can lead to frustration. Following are five insurance myths heard by some of the more than 13,000 claims people at Pro- gressive, one of the country’s largest auto insurance companies: Myth: I bought “full coverage” so everything’s paid for. Reality: There is no such thing as “full coverage.” In most states, only hability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personalsituation. Myth: I need three estimates before my wrecked vehicle can be repaired. Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of preapproved shops, you may just have to get an estimate from that shop. Myth: My insurance premium always increasesif I’m involved in an accident. Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to deter- mine yourrate. Myth: If I lend my car to some- one and he/she crashes it, I’m covered. Reality: Not so fast. If you or your friend doesn’t have optional physical damage coverages, damage to your vehicle generally won't be covered. Myth: If I buy a new car, my auto insurance company automatically knows and my newcar is covered. Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy. “Insurance can be complicated,” says Chuck Crist of Procressive. “It’s not something people deal with every day. So the more informed you are, the better choices youll make.” To learn more, visit wWww.pro eressive.com.

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