Any person driving a car in the U.S. is required to carry a minimum level of auto insurance. However, besides this federal mandate, some people buy car insurance to meet certain financing eligibility criteria, and others want to make sure that they'll be reimbursed if their property gets damaged in an accident. Thorough understanding of your coverage will preserve you from many unpleasant surprises in the future. Here are some coverage limits you need to know about.
Accident liability cannot be transferred
Before offering you a contract, the auto insurer will ask about the number of people you want to include in your policy. This means that if any of your relatives is involved in a road accident, the insurer is liable. Yet if you decide to loan your vehicle to a person who isn't in your policy, you'll have to pay for the incurred expenses. This is true even if they are related to you. Very often people think that liability can be transferred to the driver because of their involvement in the crash. But insurance agencies view things differently.
Seniors don't always pay more for car insurance
It's commonly believed that insurance premiums are more expensive for seniors than for younger drivers, but this isn't necessarily true. As you might know, some of the factors used to determine insurance premiums pertain to the ability of the driver to behave safely on the road. In the case of seniors, many auto insurers offer attractive discounts given the extensive driving experience of those individuals. You'll be surprised to see that certain seniors pay significantly less each month than drivers of other age groups.
The personal items in your car may not be covered
It's almost impossible to see a car without any personal item on one of the seats or inside the trunk. These can be anything from clothes to electronics. Following a theft and the filing of your claim, the auto insurer may refuse to reimburse for their loss because you didn't include them in your policy. Certain insurance agencies distinguish car theft from personal items theft, and require that policyholders purchase a separate policy that covers all the things present in their car.
The last thing you want is spend out-of-pocket money to buy a new laptop or smartphone.
Every auto insurance policy has its limits, and knowing them will save you from both lots of frustration and making unplanned purchases in the long run. (For more information, contact Combined Business Group)