Things You May Not Know about Auto Insurance
Only two states, Wisconsin and New Hampshire, have no requirement for vehicle owners to carry automobile insurance, although both states require residents to provide proof of financial ability in the case of an accident. Unless you live in one of those two states, you are required to purchase automobile insurance if you own a vehicle. However, the majority of vehicle owners know very little about car insurance, even though they pay for it each year, and may be surprised at what their insurance does or does not cover.
Belongings Are Not Covered
Even the most comprehensive coverage will not cover belongings in a vehicle that are stolen or damaged in an accident. However, it is possible to purchase a rider on your homeowner’s insurance policy to insure items that you often carry with you such as your GPS, laptop or cellphone. Take photos of the items or keep receipts in order to prove their condition should you need to file a claim.
Under the personal injury protection coverage on an automobile insurance policy, injuries to you and your passengers are covered. However, if you drive with your pet in the car, injuries to your pet may not be covered by your auto insurance if you are involved in an accident. If you travel with your pets on a regular basis, it may be a good idea to visit your local insurance agent to determine if pet insurance is available on your policy.
When someone purchases a used vehicle, it is standard to receive a car history report, which helps protect the buyer should the car have been in a catastrophe such as a flood or involved in an accident. Your insurance company is required to reimburse you for damages should a buyer request a lower price due to a previous accident, although they will not automatically do so. You must file an additional claim in addition to the regular claim at the time of the accident along with proof that your vehicle has suffered a loss in value. Diminished value coverage may only be available on new cars, although some companies do offer the option on older cars.
These commonly unknown automobile facts can help save you money and protect your valuables, pets and financial security after an accident.