Myth #1 Liability insurance coverage that meets minimum legal requirements offers adequate protection.
Fact: Minimum liability limits may not be enough to cover all expenses if you injure someone or damage their property with your vehicle
To learn more about the two types of liability coverages; bodily injury liability and property damage liability click here
Myth #2 Comprehensive coverage is all-encompassing.
Fact: comprehensive does not cover all damage to your vehicle.
Comprehensive coverage usually extends only to certain dangers—such as theft, fire, or a natural disaster. It can be thought of as coverage that protects your car if it is damaged in an accident that is not a collision. You would need separate collision coverage if you wanted to be covered in an accident where you hit another vehicle.
Myth #3 If my car is totaled, insurance will pay for me to buy a new car.
Fact: In a covered total loss, your insurance payout usually considers depreciation. The payout would also depend on whether the car you drive is 10 years old or a newer model. An insurance payout totaling a 10-year-old car would not be equal to the cost of a brand new one. However, if your car is only a few years old, new car replacement coverage might cover the cost of a brand-new car.
If any of these myths surprised you, give our office a call and we can help make sure your covered to the extent you need.
The team at Hutto & Dalchau Insurance Agency help with auto insurance, home insurance, life insurance, renters insurance and umbrella insurance as well as business, commercial liability, contractor, commercial auto and surety bonds in the Hill Country area. For more information and to learn about our agency visit our website at www.huttoins.com