Search the internet and you’ll find a wealth of information about Atlanta car insurance. Much of this information is good and solid. Some of it, however, is nothing but myth.
See Also: Atlanta Auto Insurance
It’s important that you’re relying on accurate information when you’re making decisions about your Atlanta car insurance. So, we want to set the record straight about four common misconceptions. They are:
1. Full Coverage Covers Everything. What most people refer to as full coverage on their car is actually just the addition of comprehensive and collision coverage. A full coverage Atlanta car insurance policy typically covers your legal obligations for liability and whatever damage occurs to your vehicle.
Full coverage does not include rentals, towing, or other add-on items. These items are called riders and you have to add them to your Atlanta car insurance policy separately. Some insurance agents will ask you at the time of creating your policy whether you want them or not, but some may not. Be sure you ask for them if you want this coverage.
2. If a Vehicle Must Be Towed after an Accident, then it is a Total Loss. The definition of a total loss can be difficult to understand. You can “total” a 20 year old car in a moderate fender bender and still have the vehicle be perfectly drivable, but damage that puts a 2 year old car on a rollback may be repaired.
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Total loss is simply when the cost to repair the vehicle exceeds a value ratio threshold. 70 percent of the value of the car is the most common, but some insurance companies may use a lower threshold.
3. Responsible Driving Practices Automatically Lowers Insurance Premiums. You may get a discount on your Atlanta car insurance if you are a safe driver, but this is not likely to happen automatically. Just because you haven’t had a ticket or accident in 15 years doesn’t mean your premium will suddenly drop one day.
If you feel that your driving history warrants a lower rate, then the best thing to do is to call your Atlanta car insurance agent and ask if it’s possible. Many factors go into determining car insurance premiums, and your driving record is but one of them.
4. Car Insurance Pays Off Your Loan if You Total the Car. This is absolutely untrue in the strictest sense, but there is a reason for the misconception. When you total a car, the insurance company assesses the value and then pays that amount less your deductible.
If you have a lien listed, the insurance company may make the check out to that lien holder directly, but not always. If the check is made out to you, it is your responsibility to pay your loan with that money.
The amount will not always meet the amount of your loan; you may end up still owing on your loan even after your insurance pays for the car. If you have a large loan, you may want to talk to your Atlanta car insurance agent about adding gap insurance to cover the difference.