As many of us know, auto insurance in New Hampshire is not a requirement. Scary thought. Even though many states follow suit and do not require drivers to carry auto insurance, there are financial requirements withheld in the occurrence of an accident. Thus, requirement or not, auto insurance protects the drivers of both vehicles.
However, there are many myths associated with auto insurance. By addressing the falsities that many Americans assume, our team at Morin Insurance hopes to create a more educated consumer.
Full Coverage
A general term used to describe coverage within an auto policy, full coverage is deceiving. Truth have it; there is not a policy in existence that covers all accidents or claims completely. Auto coverage, like anything, has its limits on the monetary value that can be paid out. For example, most insurance carriers will only pay actual cash value in the event of a total loss. ACV is determined by the pre-collision value minus any deductibles and is unrelated to replacement cost.
Any person over 25 is covered to use my car
Coverage differs between policies. Generalized auto coverage only covers those listed on the policy or those with authorization to operate the vehicle. When in doubt, contact your insurance agent to determine the specifics of your coverage. Your agent can also assist with adding additional drivers if needed.
Specific colors cost more to insure
Possibly one of our favorite tales is that red cars are more expensive to insure. With the speculation of being more noticeable to police officers, the color myth arose. However, speeding tickets will influence insurance rates; the color of your car does not.
If I let a friend borrow my car and the friend totals it, their insurance carrier will cover the accident
Coverage depends on the state you reside. While certain states force the operator of the car to pay back the insurance company if the car is damaged due to their error, others do not.
I can buy auto insurance after an incident to cover the cost
Insurance is intended to protect against unanticipated accidents. By purchasing an auto policy to cover an accident that has already occurred, you could be facing insurance fraud.
My loan will be paid in full if my vehicle is unsalvageable
Most policies only cover the ACV. So, if you owe more than the ACV, you may end up owing a car that is non-functioning. However, a discussion with your agent may provide opportunities like GAP coverage to prevent this predicament.
New Hampshire auto insurance covers personal belongings
Generally, personal belongings are insured through renters or homeowner policies, not auto insurance. It’s best to check with your agent to understand the specifics of your policy.
If a child is not covered under a parent’s policy, the parents are not liable
Whether you choose to umbrella your children or not, parents are held accountable regardless. An auto policy doesn’t cause the liability, it provides the coverage parents may need in the event of an accident.
Auto insurance in New Hampshire is surrounded by myths. However, it’s always best to know the facts so you’re not left in a situation with inadequate, or no, coverage.
For honest advice from a team of experienced industry experts, contact our team at Morin Insurance Agency today (866) 538-2544 to receive your free auto insurance quote.
