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Common Auto Insurance Assumptions- Alan Galvez Insurance- Bellefontaine Ohio auto insuranceIf I buy a red car, my insurance will be more expensive

No. Color has no impact on how much it costs to insure the car. Although it does seem that the majority of high performance sports cars are also red. And these types of cars lend
themselves very well to speeding tickets. So, it appears to be a happy coincidence if anything.

When I pay off my car, my auto insurance premium will change  

Alas, no. The mere fact of simply paying off your car and removing the lienholder has no immediate effect on premium. However, if you decide you want to drop comprehensive
and/or collision coverage at that time, then your premium would decrease.

When you say my auto and home insurance is “bundled together”, would a claim against one affect the other?

When insurance people refer to auto and home policies being “bundled together”, we usually mean with the same insurance company. They’re still usually separate policies, so if you have a claim on your auto policy, it only affects that policy.

I have up to 30 days to add a car to my auto policy

This gets a little more technical, but we've done the heavy lifting for you and reviewed our 3 main companies policy contracts. In our review, here's what the most restrictive one said (I'm taking the liberty of adapting the policy language to only use the above three terms- it just makes it easier for you):

For liability coverage to apply to a newly acquired auto, you must ask us to insure it within 14 days after you become owner.

For comprehensive coverage to apply to a newly acquired auto, you must ask us to insure it: FOUR days after you become owner, if you don’t have comprehensive coverage on at least one vehicle on the policy; 14 days after you become owner, if you have comprehensive coverage on at least one vehicle on the policy.

Collision coverage has the same rules as comprehensive. Otherwise, you DON'T have any coverage.

30 days was never mentioned. The moral of the story? Contact your insurance agent as soon as possible to add your car to your policy. 
The dealership told me they'd contact my insurance agent, so I don't have to do anything else right?

We would love to think so. The fact is, some dealerships don't call. We've had a handful of situations where the dealership never called. The insured thought everything was great, until their ID card never arrived. That was their first clue. First thing was a phone call to us asking where their ID card was, followed by amazement, then fury.
At the end of the day, it's YOUR responsibility to make sure we know about your new car. A quick call or message to your agent asking if they received what they needed to add the car is all that's necessary.

Otherwise, you could end up in a very bad spot (meaning NO coverage) per our discussion in the previous paragraphs.

Your personal auto policy covers you if you drive the car for business

Many drivers mistakenly believe that if they are using their regular car for business purposes that they will be covered under their regular policy. However, many personal auto insurance policies have exclusions on incidents that occur while the vehicle is being use for business or commercial purposes. So it is very important to check with your insurance provider and determine what type of coverage is available to protect you in the event of an accident that occurs while you are performing professional duties.

If someone else drives your car they are responsible for any accidents

State laws vary, but typically it is the insurance of the person who owns the car that is primarily liable in the event of a claim. Typically the driver’s insurance will be liable if the
owner of the car does not have insurance, but this is generally secondary. So when you lend your car to someone you are also in effect lending them your auto insurance. 
I have "full coverage" insurance. I'm covered for any circumstance
"Full coverage" is NOT a real insurance term. Most often when people say “full coverage” they're saying they have comprehensive and collision coverage.
The term is also misleading because it makes the auto insurance policy sound as if it covers everything. And no auto insurance policy protects against everything.

My credit has nothing to do with my auto insurance
Many people are surprised to discover that their credit score can affect their auto insurance rates. On the surface it may seem like these two things are unrelated; however, in the eyes of insurance companies a good credit score is typically illustrative of responsible behavior, whereas a low credit score may be a red flag that the person is irresponsible or reckless in general. Thus getting a good rate on your insurance is just one more reason to keep your credit score in good standing.

Questions? Give us a call at (937) 592-4871 or contact us via our website. We're Ohio auto insurance specialists and can help you- begin your quote request today!

Posted 3:00 PM

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Alan Galvez Insurance
134 W. Columbus Ave.
Bellefontaine, OH 43311

 (937) 592-4871


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