prop7335 February 22, 2016 No Comments

If you were one of the lucky ones who bought a new car at the end of the year, be sure to find out if you have enough insurance coverage on it. Most people are unaware of the type of auto insurance they have, what is covered, and what is’t. As long as they keep getting a card in the mail with their insurance number, everything is squared away ? except when it isn’t.. At Gulf Coast Educators Insurance, we know that not understanding your auto insurance coverage can hurt you in the event of an accident.
Here are a few questions to ask your insurance agent:

Should I have the same coverage levels for all my vehicles?

No. Most families have two or more vehicles that were bought in different years. If you just got a new car, you will want more coverage on it than your third vehicle that just sits in the driveway. While many people put the same level of coverage on each of their cars, this is not necessary and can hurt you in the long run. For example, if you have a truck in the driveway that is only used to go to Home Depot, you can probably get by with minimal coverage. Putting that same level of coverage on the minivan used to take your kids to and from school and soccer practice is unwise.

What would happen if I was hit by someone without insurance?

That depends on the type of coverage you have. At Gulf Coast Educators Insurance, we tend to recommend that you have an uninsured motorist provision on your insurance plan so you are covered no matter what happens. This coverage would make sure your medical bills were paid and that your car was repaired after an accident, without needing to go after someone who clearly could not afford to pay for these damages.

What happens if my new car is totaled?

This is a big one. If you paid sticker price for your new car or truck, got a loan on it, and drove it off the lot, it could be worth less than what you paid. If you bought it with zero down (or a low down payment), this could become problematic later on. When a car is declared totaled by the insurance company, money is paid out based on the current value of the vehicle. If the value is less than what you owe, you would be obligated to pay the difference to the bank. Essentially, you would be without the benefit of your vehicle while still owing money for it. In order to eliminate the risk of this happening, you should get GAP coverage. This ensures that your loan is paid off if the car is totaled.

We know the entire concept of insurance can feel complicated, but it does not have to be when working with an experienced agent.

Our goal is to make sure you have the right level of coverage so you are prepared for anything that comes your way. Give us a call to review your policy today.