Thursday, July 30, 2015

If you've ever misinterpreted something, you need to read about a most important part of your auto insurance policy...


Has this happened to you?  A friend tells you they finally bought a new car and want you to see it.  When you do, it turns out to be a 10-year-old car, which surprises you a bit, because you thought that "new" meant a "this-year" model.  But to your friend, buying the car is a "new" development, so it makes perfect sense to them to say they have a "new car".

The fact that all humans have different perspectives, and thus, different definitions for things, are the reasons we have dictionaries, laws, and yes, insurance policies.

In every auto insurance policy, there is a "Definitions" section, arguably one of the most important parts of a policy.  Why?  Because it tells you specifically what the insurance company covers, and what it doesn't.

Here are a couple of examples:

Within the "Definitions" section, you'll find it defines the term "Your Insured Car", so when you see the phrase throughout the rest of your policy, you'll know what your INSURANCE company considers "your insured car".  Does it mean only the specific cars listed on the policy?  What about a family member's car?  A car used for your pizza delivery business? A 17-passenger van?  A dually pickup truck? Does it mean a car you rent to take a weekend trip? Does it include a new car you just bought, but haven't informed your agent about yet?  Get the picture?  And guess what, if your car's in an accident, the insurance adjustor will follow whatever the policy definitions say, not necessarily what YOU might have been expecting.

What about the definition of who is "An Insured Person" under the auto policy?  Does that mean only people specifically listed on the policy?  Or anyone living at your house?  Or, someone you've loaned the car to?  Don't loan out your car to your neighbor until you've checked to see if your insurance policy will consider them "An Insured Person".

As I've said many times before, insurance policies are NOT all the same, and not understanding your specific auto policy can potentially ruin your life, in case of a mishap.  So lean on me, your trusted advisor.  I'm here to help you understand what's important to YOU.

David Yates Insurance Agency
1881 General George Patton Dr., Suite 103
Franklin, TN 37067
Phone 615-778-1816  Fax 615-778-1817
dyates1@farmersagent.com