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| Frequently Asked Questions and Auto Insurance Myths |
 1. What is a deductible? A deductible is the portion of a covered loss you have to pay before you insurance company will pay the rest of the covered loss. 2. What is medical payments coverage? This type of coverage is available through your auto insurance company and provides payment for bodily injury due to an auto accident. This may not be necessary if you have adequate health insurance already. 3. What is bodily injury liability coverage? This type of coverage protects you when liability claims arise when you’re at fault in an auto accident and another person is injured. 4. What is no fault insurance? This type of insurance pays for each driver’s own injuries and property damage, up to the limit specified in the policy, regardless of who is at fault. 5. What factors will affect the premium I will pay? Auto insurance costs are affected by your age, gender, martial status, driving history, driving patterns, geography, your car, your credit history, and the amount of auto insurance you have. 6. Would I need auto insurance if I were leasing my car? Yes. Your state requires you to have liability coverage, and the leasing company will requires comprehensive and collision coverage. In some states, leasing companies may pressure you to purchase gap insurance as well. 7. What happens if I don’t have auto insurance? If you are pulled over by a patrol officer and you can’t show proof of insurance, you will receive a ticket and be fined. Depending on the state, after the first offence, if you are caught again driving without proof on insurance, you will be fined an even higher amount of money, your car may be impounded, and you may have your driver’s license suspended. If you get into an auto accident and you are at fault, you are responsible for all bodily injuries and property damage. This may cost you tens of thousands of dollars. If you can’t pay the amount you owe, you may be sued 8. Will my insurance company cover the costs of a rental car if I get into an accident? Yes, if rental car reimbursement is under your policy. Rental car reimbursement is recommended since it costs a few extra dollars per term to have it as part of your coverage, while the costs of rental car may be as high as several hundred dollars. 9. I repaired my auto at a body shop referred to me by my insurance carrier. I am not satisfied with the job done. What do I do? You can go back to the body shop, explain to them what your complaint is and what you’d like them to do about it. Service-oriented body shops may cooperate with you. If the body shop doesn’t cooperate, don’t sign anything saying you were satisfied with the job done. Get your insurance carrier involved. Contact your insurance agent directly or contact your insurance company’s claims department. If none of these options work, contact your state’s insurance department and ask if arbitration is possible. 10. What do I do if I get into an accident with an uninsured motorist? If you are injured, report the injury under your uninjured motorist coverage with your company. 11. Do I file a claim if the deductible is more than the loss? Filing a claim could protect you if injuries or other damages are discovered later. If you become involved in litigation because of a covered accident, your insurance company could help you by providing legal. If you file a claim, you can take advantage of your insurance company’s auto inspection and repair options. 12. Should I file a police report if my car experiences damage or theft? Yes, it is always a good idea to file a police report in these situations. 13. Do I need to file a state motor vehicle report? Do this only if it’s required by your state. Ask your claim representative. 14. How do I know I’m being sued? You’re probably being sued if you receive a legal “Summons” or “Complaint.” Contact your claims representative immediately and forward all related correspondence as soon as possible. 15. How long does it take for my company to handle my claim? This depends of the severity of the damage, and the number of parties involved, and other factors. The more severe the damage and/or the higher the number of parties involved, the longer it will take. To speed up the process, provide your claims representative with as many details as possible about your claim. 16. Will stolen items from my vehicle be covered? This depends on whether you purchased other optional coverages such as tape/CD coverage or sound system coverage. If CDs or your radio were stolen, those items will be covered. Anything else will not be covered under your auto policy. Items stolen from your vehicle should be covered by your homeowners or renters insurance. 17. What happens if my vehicle is totaled? Whether or not your vehicle should be repaired depends on your state law, the severity of the damage, age of the vehicle, and other info. If the estimated repair cost is more than your vehicle’s value, your insurance company will pay the cash value of your vehicle minus your deductible. 18. What happens if I get into an accident in another state? Your claims representative will handle your case under the laws and regulations of that state. 19. If I lend my car to someone, are they covered under my auto policy? Although there are typically one or two names listed under “Named insured”, as a general rule, insurance follows the vehicle, not the driver. Auto insurance providers normally provide coverage if your car is being driven by you, your spouse, any children, blood relatives, and anyone you lend your vehicle to.
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