Like many people who have a car insurance policy, you may be unaware of many of the finer points of this insurance. You may have assumptions about your coverage that aren't true. You may not even have the coverage you think you have. The following are just a few things about your policy that you may not be aware of.
Not every driver is covered
Many people understand that insurance follows the car and not the driver. In case you don't understand this, it simply means that if someone else were to drive your car, they are covered. Perhaps you let someone borrow your car or you are traveling on a road trip and let someone else drive your car; in either case, they are covered if they get into an accident. However, there is an important exception, and this is for anyone who is living with you. It doesn't matter whether they are a relative, a friend, or a roommate. They are not covered. You must add them to your policy to be protected.
The liability portion of your insurance may not be enough
Many drivers have an insufficient amount of coverage for liability and property damage. What you need to understand is that the limits of the coverage you have only represents the maximum amount your insurance company will pay in claims. If the total amount of the claims exceeds your coverage, you may be held liable. And if you have plenty of assets, you are likely to be sued, so the injured parties can recover adequate compensation. Even if you don't have much in the way of assets, your wages can still be garnished.
You may be paying too much for your policy
Although you may have been given any discounts you were entitled to at the time you first bought a policy, as time went by, your circumstances may have changed. Your insurance company Is not likely to inquire about these changes to make sure your policy is as low as it can be. Once you are a customer, they just make it easy to renew your policy. You may no longer smoke and be entitled to a non-smoker discount. You may now be old enough for a senior discount. In general, your insurance cost should be dropping as you age and continue with a good driving record. Older drivers are a lower risk to insure.
If you suspect that you don't have the coverage you thought you did, you should take a look at your policy. Any questions you have should be directed to your agent. However, if you suspect you are paying too much for your policy, you should get auto insurance quotes for a new policy from several insurance companies.