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YourHub.com \\ Okeechobee \\ Stories \\ Tips & Techniques \\ General Tips & Techniques

Common Auto Insurance Myths Revealed

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Contributed by: Jason Guari on 12/5/2007

Common Auto Insurance Myths Revealed

Hi I'm attorney Jason Guari, and for this month's LAW CORNER, I'll share some important information regarding facts and myths about what is covered under a typical auto policy. You may think that you are covered in certain situations, but you might not be. Let's go through a list of potential scenarios. Keep in mind that each policy is different, so while this information is generally accurate, you can verify with your own insurance company.

First, if a friend or anyone not listed on your policy borrows your car, gets in an accident, and injures the other driver - who is liable? Whose insurance company pays the claim? If you thought your friend's car insurance would cover the accident, you're wrong. That's a myth. Auto insurance is attached to the vehicle, not the driver, so your insurance would be responsible for damages and injuries.

Here's another one. You just bought a new car, but forgot to alert your insurance company. You drive away from the dealership before adding it to your policy, and you get in an accident. So are you covered? The good news is: Most policies have a "Newly Acquired Vehicle" clause which allows you up to 30 days to report the new car to your insurer. During that time, the vehicle IS covered at your current policy limits. But you should check your policy.

What about rental cars? Many people are unsure about this one. The myth is "I'm automatically covered." But it depends on your policy. If you have proper coverage on your vehicle - i.e. collision, substitute vehicles and rental vehicles - then you don't need to purchase the insurance the rental car company tries to sell you. Before renting a car again, check your policy.

What about if a vehicle is damaged in a hurricane or other natural disaster? The damage is covered if your policy includes comprehensive coverage, which covers damages not resulting from an auto accident.

Another common myth is that it's not necessary to have uninsured motorist coverage. Wrong! Anyone who has been injured or had their car severely damaged by an uninsured motorist will tell you how important it is.

Lastly, there is confusion lately about No-Fault insurance in Florida (Personal Injury Protection). No-Fault insurance does not mean that an accident is not your fault. It means your insurance company pays for your damages (up to your policy limits) regardless of who is at fault. As of January first 2008, the No-Fault provision will be reinstated.

The bottom line is, auto insurance policies can be complex with various options and terminology that you may not be familiar with. Protect yourself by taking the time to review and your policy so that you can be an informed consumer. If you have any questions regarding your auto insurance policy, please do not hesitate to call me at (561) 366-9099 or email me at jguari@murrayguari.com.

Also, feel free to contact us for a handy Auto Accident Tips card for you to keep in your glove box. It's complimentary and you can request one by calling us or visiting our website, murrayguari.com.

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