Myth Busters – Insurance Division

 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 sometimes skip the details and that can lead to frustration.

Following are five insurance myths heard by many insurance agencies around New York:

Myth: I bought “full coverage” so everything’s paid for.

Reality: There is no such thing as “full coverage.” In New York State only liability, personal injury, and uninsured motorist 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. At Hudson Valley Agents, our agency writes insurance with more than 15 different auto insurance companies, and not one of them requires this. 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. Most of the insurance companies we do business with have an accident forgiveness program as well.

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 doesn’t have optional physical damage coverage’s, 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. Generally, you have 30 days to add the new vehicle to your policy.

“Insurance can be complicated,” says Chuck Crist of Progressive. “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make.”