Were you aware that if you do not pay your insurance, it's going to cancel? And if it cancels, you then have no coverage in place? I know... crazy world, right? This is just one of the comments we hear more frequently than you would think. Here are some other misconceptions about insurance that mislead people about what is, might not be or is not covered.
We know insurance isn't fun. It gets hard to listen to your agent as they are explaining what it covers, doesn't cover, etc. We understand that. However, we are not only your agent but are also educators of insurance. We want to educate you so you know what your policy covers. That way you aren't caught off guard in the event of a loss. A lot of these misconceptions about insurance can leave you with gaps in coverage or put you in a situation where you thought coverage would come from "somewhere else". So let's chat a little about some of them.
Misconception: A deductible will not apply if I hit a deer because they are a wild animal.
Fact: Your deductible will absolutely apply. If you have physical damage coverage for your vehicle (sometimes referred to as full coverage, comprehensive or collision coverage), your deductible will apply when you submit a claim to get your vehicle fixed. The only time it would not apply when physical damage to your vehicle is done is if someone else hit you and were deemed at fault. Then their liability would kick in from their policy to cover your damages. Otherwise, yes your deductible is going to apply.
Misconception: As long as the person driving the vehicle is covered, than the vehicle is covered.
Fact: Not true. If the person you borrowed your car to is in an accident or damages your vehicle - your insurance is what will cover it if you have that coverage in place. The only thing that other person's auto insurance is going to cover is if they are injured in that accident - it will cover their medical/lost wages. There are some exceptions here in regards to liability and fault, the scope of an accident, injuries, etc. But over all - if you let someone borrow your vehicle and they hit a deer or another vehicle - that physical damage to your car is going to come off your policy to get fixed. Not theirs. And yes, your deductible will apply.
Misconception: I don't need higher limits than state minimum. I don't have any assets to worry about.
Fact: No matter where you are in life - 18 years old or 78 years old and anywhere in between - state minimum limits DO NOT PROTECT YOU! If you get into an accident and you are deemed at fault, your auto policy will pay out up to the limits of your policy. MN State minimum right now says you have to have 30/60/10 - $30,000 in coverage per person in an accident, $60,000 for the ENTIRE accident and $10,000 for property damage - to be legal to drive in the state of Minnesota. For a breakdown of what that means to you, please refer back to my blog Liability Coverage Explained. For this blog, I'm just giving the facts of a misconception. Note that if your auto policy pays out up to the limits and more is required - that's coming out of your pocket. Don't have assets? That's fine, they can garnish your wages. It can effect your future regardless of assets.
Misconception: I don't need comprehensive coverage on my vehicle when I store it in the winter. It's in my garage so my homeowners policy will cover it.
Fact: Wrong! If you do not have an auto policy in force, there is no coverage on your auto. This applies to atv's, side by side, boats, motorcycles, etc., with few exceptions. If you are going to store your vehicle for the winter, you want to have storage coverage on it in the event there is a loss such as theft, fire, hail. Your homeowners will not coverage an auto.
These are just a few of the misconceptions about insurance that lead to gaps in coverage. I use them as examples only to educate you. People, CALL YOUR AGENT! Do not ever assume that what you're neighbor told you or what the car salesperson told you is fact. Matter of fact, I would ask if they carry a current insurance license. Only a licensed insurance agent can give you the facts of how insurance works. Trust your agent. That's why we are here. That's why we are required to take continuing education classes each year - so we can educate our clients, so we know the changes that take place in insurance. If you ever have a question concerning your coverage or what your policy might cover - never assume. Call Us! We are your expert go to.
Besides, we love to chat! Let's talk about changes you might recently have went through, too. You would be surprised at what could have an impact on your policy. Come see our smiling faces! Drop us an email or text. Give us a call. Which ever way you prefer to communicate, we got you! Let's Protect What's Important to you together.