January 31, 2023

Clearing up auto insurance confusion

What is really included in your policy?

Clear up auto insurance confusion

Do you know what’s in your auto insurance policy? Many people are surprised to learn — after a car crash or other vehicle mishap — that something important is not covered. That is not a good thing. Let’s take a look at some of the misconceptions and clear up the auto insurance confusion.

My auto policy covers what?

A recent survey by Forbes Advisor yielded two very interesting findings. The first is that a large percentage of drivers think they have coverages for things that are not available in auto insurance policies, such as accidental death and dismemberment coverage (50% of respondents believed they have this). This is actually a type of life insurance policy, often for people with high-risk jobs, like firefighters.

In another example, a total of 47% believed they have coverage for additional living expenses, which, in reality, can be part of homeowner or renter insurance policies, not an auto policy. Other drivers believe they have nonexistent auto coverages such as “extended crash protection” (49%) or “vehicle emissions” coverage (41%), per the survey’s results.

The second finding is that many drivers don’t really understand what the specific elements of their coverage mean. In other words, they don’t have a handle on what would be covered under various circumstances.

Test your knowledge

Here are questions from the survey. Do you know the correct answers? Answers below, including percentage of incorrect answers per question.

  1. If you cause an accident, what type of car insurance would pay for the other driver’s vehicle damage?
  2. If a tree crushed your car roof, what type of auto insurance would pay?
  3. If you accidentally crashed into a neighbor’s fence, what type of auto insurance would pay for the fence?
  4. If you backed into a pole, what type of car insurance would pay for your car damage?
  5. If your car is damaged by a flood, what type of auto insurance would pay for the damage?
  6. If someone else crashes into you and they are injured but they don’t have car insurance, what type of car insurance would pay for their medical bills? Choices: liability, collision, comprehensive, uninsured motorist coverage, none of the above.

To do: Find out what’s in your auto policy

If you are not confident that you know exactly what’s in your auto insurance policy, maybe it’s time for a review. The aftermath of a car crash (or other vehicle mishap) is no time for surprises. Learn more about types of auto policy coverages and how much auto liability insurance you really need. Next, call your Bradish agent to review your policy with you. Your agent can help to make sure you fully understand what is covered and what is not. You may discover you need to add something, or that something is no longer necessary. In any case, it will be good to know what to expect in an emergency.

1. Liability coverage. 62% got it wrong; 2. Comprehensive coverage. 59% got it wrong; 3. Liability coverage. 60% got it wrong; 4. Collision coverage. 57% got it wrong; 5. Comprehensive coverage. 56% got it wrong; 6. Answer: None of the above. 85% got it wrong

by Kris A. Mainellis