Misunderstandings about California Auto Insurance

Most individuals typically go through their lives thinking that they are covered in the event of an auto accident just because they continue to renew the same policy year after year. Granted, a person could be correct with this type of thinking – until they get into an auto accident with an underinsured or uninsured driver, a friend borrows their vehicle and wrecks it, or if their vehicle gets stolen. These are just a handful of the circumstances that many people think they are protected from when in reality, they aren’t. If you don’t have the right coverage, situations like the ones discussed above could wind up costing you thousands of dollars that may put a financial strain on you and your family for years to come. The bottom line is that you should never assume that you have sufficient Auto Insurance Clovis coverage. This is just one of many misunderstandings or myths that many individuals have made the unfortunate mistake of believing. The following is a list of the more common myths and misunderstandings about California auto insurance. All California auto insurance policies protect you against uninsured drivers – FALSE, if you don’t have this coverage, you could be in for a lot of expenses if your vehicle is damaged in an accident caused by an uninsured (or underinsured) motorist. Remember, with the exception of liability coverage, every other type of coverage is optional. California auto insurance policies cover personal property inside your vehicle – FALSE, personal property items like cell phones, laptops, or tablets are covered under your homeowner’s policy, not your auto insurance. Damages due to natural disasters as well as vehicle theft are always covered – FALSE, not unless you are paying for comprehensive coverage. This is what protects you against accidents with animals, natural disaster damage, and theft. If you loan your vehicle to a friend, they’re responsible if they get into an accident – FALSE, it’s your insurance and your vehicle therefore, it’s your responsibility – regardless of who was driving. If you recently renewed your California insurance policy, you won’t need another policy for the vehicle you recently purchased – FALSE, regardless of when you paid for your policy, a new vehicle will need a new policy. Insurance companies can cancel a person’s policy any time they choose – FALSE, according to state insurance regulations, your insurer cannot cancel you during your policy term – unless they have valid grounds to do so such as insurance fraud or non-payment. It costs more to insure black and red cars – FALSE, color has nothing to do with your premium rates. When you are signing up for insurance, your agent or broker will never ask you what color your vehicle is. So if you’ve been reluctant to pay for that custom paint job with the neon flames, it won’t affect how much you pay for your insurance. Smokers pay more for auto insurance – FALSE, that may be true when a person that smokes is shopping for healthcare and life insurance, but it doesn’t apply to California vehicle insurance. When renting a vehicle, you’ll need to purchase additional coverage – FALSE, unless this coverage is not included in your insurance policy. This is just a popular rental car agency sales pitch, nothing more. Your California auto insurance coverage applies to rental vehicles and any other vehicle you may be driving. You don’t need comprehensive coverage if your vehicle is too old to steal – FALSE, no vehicle is too old to steal when car thieves or drug addicts get desperate for money or a fix. Recent statistics show that some of the most popular theft targets are certain Honda and Toyota models that are over 10 years old. Your credit score has nothing to do with your premium rates – FALSE, your insurer and every other insurance company out there pays close attention to every client’s credit scores. Your insurance score is based on your credit score, and in the insurance company’s eyes, the lower it is, the greater the likelihood of you filing a claim. Your state’s minimum coverage requirement is all the insurance you need – TRUE, the state minimum liability coverage is required by law. However, if you are involved in an extremely serious accident involving bodily injury and property damage, you won’t have enough coverage to pay for all of it. Give us a call here at Central Auto Insurance Agency by dialing 559-326-0700 to compare insurance rates and get more information.