Fact vs. Fiction:
Uncovering auto insurance myths   Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying. In the rush to feel “covered,” they can skip the details. That can lead to frustration.

Following are five insurance myths heard by some of the more than 13,000 claims from one of the country’s largest auto insurance companies:

Myth: I bought “full coverage” so everything’s paid for.
Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.
Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get an estimate from that shop.

Myth: My insurance premium always increases if I’m involved in an accident. Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth: If I lend my car to someone and he/she crashes it, I’m covered.
Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days.

To learn more, contact Barnes & Howell today

Auto Insurance Made Easy

Understanding insurance can often be like trying to learn a foreign language. Many find it confusing and intimidating. Fortunately, there’s help. Here is a quick reference designed to help you understand some of the most common kinds of coverages. The reference was put together by The Progressive Group of Insurance Companies.

Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory. Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you. Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maxi-mum that would be paid out for bodily injury per claim and the third number represents the maxi-mum amount your insurance company is obligated to pay for property damage you cause.

Collision. When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive covers damage caused by events other than a car collision—such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage. Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.

Barnes & Howell can help you determine the price, coverage and service that best meets your needs. To learn more, contact Barnes & Howell today.