5 Facts You May Not Know About Auto Insurance

1. That new car you just bought may not be covered. Your existing auto insurance policy may cover your new car if it is a replacement for another vehicle, but only for a specified period of time. (It is important to notify your insurance company of any changes as soon as possible)


2. You may not have coverage if you lend your car to a friend or family member. Your auto insurance policy generally will cover your car when you occasionally lend it to a friend. If your friend uses your car regularly or you let someone in your household who is not a listed driver on you auto insurance policy use your car, your policy may not cover them.  If you lend your car and it is in an accident that results in a claim with your insurance company, it will be on your record and could result in higher premiums.



3. Paying your electric bill late could boost your auto insurance premiums. One of the many factors most auto insurance companies now use when setting your premiums is your insurance credit score. ( Paying  your bills on time and how much debt your have are  used to calculate your credit score)


4. You may not be covered if you hit a deer or your car is damaged in a hail storm. Collision coverage does not cover your car for damage resulting from weather events such as flooding, wind or hail; collisions with animals; vandalism; or fire or if your car is stolen. You need comprehensive insurance coverage to pay for damage or loss in these situations.


5. Your personal auto insurance policy may not cover your car when it is used for business. This can be a grey area, especially for the self-employed, so it is a good idea to talk to your insurance agent about when and how your personal car may be used in your business to determine whether you need commercial coverage.