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Facts about Auto Insurance You Need to Know

If you own a vehicle, you need to have insurance. There is nothing you can do to get around this. Unfortunately, too many people are paying way too much for their insurance coverage, because they just don’t understand their policies. Here are some facts about auto insurance that you may not have known about previously, which will help you to understand what you are actually paying for:

Facts about Auto Insurance You Need to Know

  • Am I responsible if I hit a parked car? The answer is a simple “yes”. You are fully liable for any damages to the other vehicle and for your own damages. This is because you are the only person at the wheel, and you should have been aware of your surroundings.
  • Am I responsible for passengers if I have an accident? If you are at fault in the accident, you will be liable for any expenses involved, including treatment for injuries received by your passengers. If you are not at fault, the other driver will be responsible for these expenses.
  • How are my insurance rates affected by accidents? This depends on a number of factors. If you have an accident, you will find that when you renew your policy, the rates will be higher, as much as 10% higher for the next three years. Your rates may even increase if you are not at fault.
  • Am I covered in the event of a hit and run? Unfortunately, because hit and run drivers don’t stick around to give out their insurance information, you will more than likely have to at least pay the deductible yourself in order to have your vehicle repaired. It may actually be better not to report a hit and run if you can afford the repairs yourself, because of the increase it will bring to your insurance rates.
  • Who is responsible in a multi-car pileup? This can be quite difficult for insurance companies, but there are a number of ways to determine who is at fault for the accident. This is the one time when you may not be responsible if you rear end another vehicle, because if you are hit from behind by someone else, you are probably going to hit the car ahead of you, and it isn’t going to be your fault. It may be that you will be required to take some financial responsibility for the pileup, but it won’t be entirely on your head.
  • Will other drivers be insured if they drive my car? As long as you have given others permission to drive your car, they will be covered under your insurance, even if they do not have insurance coverage themselves. Remember, this is for occasional drivers only. If someone else is going to be driving your vehicle regularly, he or she will have to be added to your policy.

These are just a few of the things you should know about your insurance coverage. To learn more, you can ask insurance agents for information, and you can also find everything you need to know about auto insurance online.