Five misconceptions about auto insurance

Hitting the open road is something most of us do every day. Handling an auto insurance claim is something none of us wants to do, but like it or not, may have to deal with one day.

If it has been awhile since you reviewed your policy, it's best to make sure you have adequate coverage in the event that an accident happens. Here are five common misconceptions about auto insurance that might help clarify things for you.

1. I thought I had "full coverage." Many people believe that an auto insurance policy automatically includes things like collision coverage, protection against theft or damage of special custom add-ons, or even automatic rental car reimbursement after an accident. In truth, these are often options that you must specifically choose when getting car insurance quotes.

2. I thought I had rental-car reimbursement. If you've been in an accident and your car is not drivable, you'll most likely need a rental car. It's easy to assume that an auto policy automatically covers the cost of renting a temporary replacement car. However, this too is an option. Rental car reimbursement coverage must be specifically requested and purchased when you buy your policy.

3. I thought I wasn't at fault. Determining who's at fault in any accident is neither a hasty, nor an arbitrary decision. If the accident is serious enough, a police officer would likely come on scene and file a report. Your insurance company will do an investigation of its own to gain a clear, 360-degree view of what happened.

4. I wasn't driving my car when it was damaged. Why am I being held responsible? If you lend your car to a friend who then happens to get into an accident, it might seem obvious that your friend would be responsible for the damage. In truth, however, auto coverage follows the car.

5. My car was totaled in an accident, but the amount of my claim settlement isn't what I paid for the car. If your vehicle is deemed a total loss after an accident, in certain cases, it may be impossible to recoup the full cost of the car. Natural depreciation, market changes and other factors are all calculated into your reimbursement fee.

Now that you've been educated on some of the most common misconceptions about insurance, you'll know what questions to ask when getting free car insurance quotes online.

Courtesy of ARAcontent