Insurance terms like “no-fault” are familiar to anyone who owns a car, but do you really know what these terms mean or what your responsibilities are if you’re involved in an accident? Here are the truths behind some common insurance misconceptions.
– Since we mentioned no-fault insurance, let’s clarify what that stands for. No-fault does’t mean your company pays out regardless of whether or not you’re responsible for an accident. This type of insurance simply means that both drivers and their passengers are covered for any medical expenses incurred as the result of the accident during the time it’s being investigated. Once the respective companies determine who’s at fault, that driver will be held partially or completely liable.
– Insurance only covers the car, regardless of who’s driving it. That means that if you lend your car to someone and they get into an accident, the claim is filed to your insurance company, not theirs.
– Another fallacy is that more expensive vehicles cost more to insure. Rates are determined by the cost of repairing a vehicle, based on historical claims for that particular type of vehicle, regardless of purchase price or value.
– A common myth about insurance is that a traffic ticket will automatically raise your rates. The truth is that your rates depend on your overall driving record, as well as the type of offence you were ticketed for.
– Auto theft insurance only covers your car if it’s stolen, not personal property contained in the car. Items like electronics should be insured separately under you home owner’s or renter’s policy.
– Cars or trucks that are used for business, even on an occasional basis, need an auto insurance policy for business use.
– Car rentals aren’t completely covered on your personal policy. If you wreck a rental, you could still be liable for damages to the rental company for loss of use while the rental is waiting for repairs. Personal insurance also doesn’t cover the complete replacement cost if the rental is totalled.
– Uninsured motorist coverage is necessary, even if you have full coverage. This pays for damages to your vehicle if you’re involved in an accident with a driver who isn’t insured.
Baltimore car insurance can be found in several ways. You can either get referrals from friends and relatives, search on the Internet or look in your local directory. It’s smart to comparison shop before deciding on one company over another.