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Tennessee Auto Insurance Myths and Misconceptions

Buying auto insurance can be a confusing endeavor, and many people are not sure either about how to buy insurance or about what happens when they have to make a claim after an accident.

Unless you know your rights, you could find yourself not getting the coverage that you deserve, without coverage that you believe you have, or left with a big bill in the event that an accident happens. Our Knoxville accident lawyers help those who have been in crashes to make informed choices and to deal with the insurance company. But if you are just buying insurance, it is important to understand some of the common myths and misconceptions that could affect your purchase.

Misunderstandings About Auto Insurance

Recently, the Digital Journal discussed some of the most common myths that people believe when it comes to car insurance.

  • Trusting that an agent always gets the best price. If you shop around on your own for car insurance, you may be able to get quotes from more companies than your agent will, and potentially do better on price.
  • Swerving into a car to avoid hitting a deer. Many people veer out of the way to avoid hitting a deer and believe that the accident will not be considered their fault. This is not the case. If you hit someone else when you swerve to avoid a deer, they can make a claim against you and your insurance costs can go way up. You may actually be better off hitting the deer rather than potentially getting into an accident that injures someone else.
  • Believing that you always have rental car coverage. You may not have this coverage after an accident unless you have specifically opted to purchase a rental policy.
  • Not reporting an accident because you think that will stop your rates from going up. If you don’t report an accident, you jeopardize your rights with your insurer. Your rights also might go up anyway because other drivers involved in the accident might make claims or you might get a ticket due to the accident.
  • Thinking your car insurance will be enough to pay off your car loan if your vehicle is declared a total loss. Your insurance is not designed to cover the total balance on your car loan but is instead designed to cover the value of your car. You’ll be paid market value if your vehicle is totally destroyed in an accident and if you owe more on the car than it was worth, you will be stuck paying off the car loan even once the car is damaged. This can be avoided through the purchase of gap insurance.

These are just a few of the mistakes that people make when it comes to buying insurance. Mistakes made during the purchase process and mistakes made during accident claims can be costly and you could end up giving up some important rights if you are aren’t fully informed.

If you are involved in a Knoxville car accident, contact Hartsoe Law Firm, P.C. at (865) 524-5657.

Additional Blog Entry:
Tennessee Tractor-Trailer Crashes & the Risk of Increasing Size and Weight Limits, Tennessee Injury Attorney Blog, July 10, 2013

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