Hi I’m Elora Murray at Fusion 360 Studios
reporting for the Robert J DeBry News Network. In most states, if you own a car, you’re
required to have it insured. And while most insurances companies claim they have your
best interest at heart, that’s not always the case. Truthfully, to auto insurers, the
biggest issue is to protect their respective bottom lines. Here are 7 things insurance
companies don’t want you to know about after a car accident. First, insurers save money
when you car is declared a total loss. Just because you might be able to get a new car
doesn’t mean you should. It can actually be less expensive for insurers to total a
car than to repair it.Second, questionable methods are often used to value cars after
accidents. Edmunds and Kelly Blue Book are two trusted sources for car valuation. Insurers
often use unusual, complex formulas to find the best valuation for themselves.Third, once
it’s been repaired, your car might be worth substantially less. Even when an insurer pays
for repairs, a car is going to be worth less. Check to see if a diminished value claim is
a real possibility with your current provider. Fourth, auto insurance claims can skyrocket
rates. There’s a great deal of mystery surrounding how insurers set premium rates. In fact many
insurers won’t inform you as to rate changes after an accident.Fifth, even a friend’s
poor driving can cost you big time. If an accident occurs while a friend was driving
your car, rates will increase. It’s best to drive your own car at all times.Sixth,
in some situations, car coverage can be dropped and claims denied. When drunk driving and
material misrepresentation occur, a client can be dropped. In most cases, insurers can’t
drop a client in the very moment coverage is needed.The final thing insurers don’t
want you to know is auto insurance doesn’t protect personal property. Some states require
drivers to also purchase liability insurance. That being said, this doesn’t protect personal
cars or property.That’s all the news we have for you today. Once again, I’m Elora Murray with the Robert J. DeBry News Network. Thanks for joining us.