(2) Your State’s Minimum Auto Liability Insurance Is Sufficient
It is one of the most common auto insurance myths about insurance coverage in the minds of several individuals. People often believe in purchasing only the minimum amount of auto liability coverage.
This is in turn is a necessary requirement to drive a vehicle as required by several states or countries. But, actually you need more coverage than state’s minimum requirement. It is because accidents are usually expensive encounters that cost more than minimum limits.
Your minimum auto liability insurance will protect you from legal action. But, it may not be sufficient to protect you against financial losses incurred due to an accident.
According to insurance industry & consumer groups, you should purchase insurance policy that provides $100,000 of bodily injury protection per person & $300,000 per accident.
Thus, you should purchase a policy for your vehicle depending on your unique situation for additional coverage. You should also consider your ability to pay more out-of-pocket expenses for losses.
(3) Your Friend Driving Your Car Meets Accident, His/Her Auto Insurance Will Cover Financial Losses
It is one of the worst auto insurance myths about insurance coverage that can put adverse effects on your finances. People often believe that if their friend is driving their car meets an accident then he will be completely responsible for any financial losses.
But, actually it is the insurance of the person that owns the car & is primarily liable in the event of a claim. Although, some variations may occurs depending on the existing state’s laws.
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