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New Hampshire auto insuranceDrivers are obligated to carry auto insurance in 49 of the 50 US States.  Auto coverage protects the driver in the occurrence of an insurable event. auto insurance is important; but, there are many myths associated with it. By addressing the falsities that many Americans assume about auto insurance our agency hopes to create educated consumers.

1.    Full Coverage is a general term used to describe what your auto policy includes. It is also very deceiving as there is not a policy in existence that covers all accidents or claims completely.  Auto coverage contains limits for the sum they will pay for loss brought upon others.   Also, most insurance carriers will only pay Actual Cash Value in the event your own car is a total loss.  Actual Cash Value is comparable to the amount you could get for the car before the accident.  It is not related to what it would cost to replace your auto.

2.    Any person over 25 is covered to use my car.  Who is covered to drive or use your car will differ from policy to policy. Generalized auto coverage will only cover those on the policy and for infrequent drivers that have authorization to operate the auto.  You should contact your insurance agent to find out the specifics or your coverage and if you need to add an additional driver to your policy, your agent can assist you with that.

3.    Red automobiles are more expensive to insure.  This myth began when people began speculating that those with red cars were more prone to get pulled over as their car was more visible to the police. The truth is speeding tickets can influence insurance rates; the color of your car does not.

4.    If I let a friend borrow my car and the friend totals it, their insurance carrier will cover the accident.  This depends on the state you live in.  Certain states force the operator of the car to pay back the insurance company if the car is damaged due to their error.  

5.    I can buyauto insurance after the incident and I'll be taken care of.  Insurance is intended to protect against unanticipated accidents.  This logic could be equated to purchasing a lotto ticket after the numbers were pulled and assuming to win.  Purchasing an auto policy to cover an accident that has already occurred is also known as insurance fraud.

6.    My loan will be paid in full if my vehicle is unsalvageable.  As cited earlier, most insurance policies will only cover the Actual Cash Value of the car. Actual cash value is equal to what the car would cost if it was new minus depreciation.  If you owe more money to the lender than the Actual Cash Value, you very well may end up owing on a car that is non-functioning.  

7.    If I have any personal belongings stolen from my vehicle, my auto insurance will take care of me.  Auto insurance is intended to insure the car, not personal belongings in the vehicle.  Personal belongings in the car can be insured on a renters or homeowner policy. If your car is stolen, and there are personal assets inside, you may be covered but it is best to check with your agent to understand the specifics of your personal policy.

8.    I don't want to put my teenager on my policy because I don't want to be held responsible if they get in a wreck.  Parents are answerable for the actions of their teens.  The car policy does not cause the liability; it provides coverage to the parent for that liability. If the kid is not covered, the parent will still be held accountable for any damage they create.

9.    The only option to get insurance to drive any car is by buying "non-owners" insurance.  Auto insurance was intended to provide coverage for the car owner, not the car.  The vehicle isn't going to be the one in front of the judge in the occurrence a lawsuit stems from an auto crash; it will be the person who owns the car.  Therefore, in most instances with some exceptions, the car policy will provide coverage for the policyholder when they are operating other people's cars.

There are many tales related to auto insurance. It is best to confront these tall stories so that you are not put in a bad situation when purchasing auto insurance. Disproving these fabrications will keep you better familiarized and armed against fallacies before buying auto insurance.  Always be sure to go over your concerns with your auto insurance agent. Call us at 866-538-2544 or get a free New Hampshire auto insurance quote.

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