Do you have all of the auto coverage you think you have?

Preventing Claim Nightmares

THE WOODLANDS, Texas -- Millions of auto owners are involved in accidents every year, which can be quite an ordeal. If that weren’t bad enough, auto owners are often stunned to find out that their auto coverage actually may not cover everything they anticipate. For instance, many auto policies will take a deduction for depreciation--even if the car is brand new and is involved in an accident while driving off the dealer’s lot!

“Too often, the importance of having the right insurance is not realized until a loss occurs, and consumers are left paying more than expected for auto repairs,” said Shelley Rollins from the The Rollins Agency. “There are many unexpected out-of-pocket expenses that consumers need to be aware of, because all insurers are certainly not the same.”

Below are some questions you should ask before purchasing auto insurance:

- If your new car is damaged beyond repair, will your auto insurer replace the vehicle with a new one, or take a deduction for depreciation?

- If your older auto is involved in an accident, will your auto insurer replace items like tires, batteries, steering and electrical wiring components in full, without taking a deduction for depreciation?

- If you have an accident while driving a rental car and it needs repair work, will your auto insurance pay the rental agency’s expenses for daily loss of rental income while the auto is out of service? Will it pay for the towing, storage and administrative costs the rental company may incur?

“Consumers are often surprised to find out that their insurers deduct for depreciation when settling both total and partial loss claims on their brand new owned vehicles,” said Rollins. “Customers may also get bills from a rental-car company for the company’s business losses, and are unhappy to discover that their auto insurance does not reimburse for these expenses. By asking questions before the loss, the customer has the option to
either accept limited coverage or secure a more complete policy.”

For a better understanding of the level of insurance that’s right for you, contact Shelley Rollins at the The Rollins Agency or visit the agency at 25132 Oakhurst Dr. #215.