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5 surprising facts about your auto insurance coverage

Not very many people understand their auto insurance coverage, and even fewer people have actually read their policies. For that reason, most are surprised to learn what their auto insurance does or does not cover after an accident or another event.

Here are five facts about auto insurance coverage that may surprise you. Keep in mind that these facts are general in nature, and you will need to consult your individual auto insurance policy to know exactly what your coverage entails.

1. People who borrow your car are typically covered under your plan.

If a friend asks to borrow your car and gets into a wreck, your auto insurance policy will most likely cover the damages. However, this is not true if the person borrowing your vehicle lives in the same home as you.

2. Your auto insurance covers the car itself, but not property inside of the car.

If you have something of value that gets stolen from your vehicle, your homeowners or renters insurance would apply, not your auto insurance.

3. If your car is totaled, you can expect to be compensated for the value of the car before the crash.

If it would cost more to repair your vehicle than it would to fix it, your insurance company will pay you the fair market value of your vehicle immediately prior to the wreck, not the value of your vehicle after the wreck or what you paid for it.

4. Your auto insurance may or may not cover damages caused by an uninsured driver.

Your insurance will only cover damage to your vehicle if you have collision insurance coverage and if the accident was your fault. If it was the uninsured driver's fault, then it will be much more difficult to get the repairs paid for unless you have uninsured drivers insurance coverage.

5. Your insurance company is not on your side.

Even after making faithful payments for months or years on end, many drivers are shocked that their own insurers try to limit their claims. An insurance company has one goal: to make money. That's why a personal injury lawyer is needed to protect your rights after a car accident.

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