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Full Coverage Auto Insurance?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 09/11/2017

Q: My car insurance agent told me there is no such thing as full coverage auto insurance, but I know I have been told there is by other people, does my agent know what they are talking about?

A: Yes, your car insurance agent knows what they are talking about because full coverage auto insurance is actually just a myth. Because there are so many pieces to car insurance and because we all need different coverages to provide us with the best protection possible for our unique situations, there is literally no such thing as full coverage auto insurance.

Full Coverage Auto InsuranceWhat this came from is that people started calling having liability and comprehensive and collision on their vehicles “full coverage”. But one, that is not the most insurance coverage that you can possibly buy, so it is really not “full” in that sense. Two, to one person having full coverage may be the liability, the comp, the collision, the towing, and the rental car coverage and to another it may just be the liability coverage that the state requires them to have.

So rest assured, your car insurance agent does indeed know what they are talking about.

What is No-fault Insurance?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/31/2017

Q: A friend of mine that lives in a different state told me they have no fault car insurance. What is that and do I have it also?

A: No fault insurance is also called PIP coverage. It is personal injury protection coverage that pays for your injuries whether you were at fault for the accident or not, this is why it is called no fault insurance. For one state in particular, this type of coverage came about because the number of fraudulent car insurance medical claims reached astronomical levels.

Large organized groups of people would box an innocent driver in and then one of the vehicles would cut them off and slam on their brakes so that the innocent driver would rear end them. The people in the other cars would then give statements as witnesses stating that the innocent driver was actually driving too close and that’s how they rear ended the front driver. No matter how much the innocent driver claimed the truth of what really happened, they were outnumbered by the people in the front vehicle and the fake witnesses in the vehicles that boxed them in.

In addition to the accident set up, there were also doctors involved that confirmed injuries that were fake and attorneys that help set the stage for settlements. Everyone got a payout from this fake claim.

When these rings were finally busted the state stepped in and started changing coverage laws to help stop this car insurance fraud from happening.


Wells Fargo Forced Me to Buy Their Car Insurance

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/30/2017

Q: Why did Wells Fargo charge me for car insurance when I already had a policy?

A: This Washington Post article is a really good explanation of what has been going on over at Wells Fargo for the last 6 years.

To put it short and sweet, Wells Fargo was basically charging people for forced place car insurance that they should never have been forced to have. Not only did this cost many people additional money, it also caused some to default on their loans and lose their vehicles; which also means that it ruined their credit.

Now that they have caught this “error” people are supposed to be getting refunds. But if you were one of the ones that lost your vehicle and had your credit ruined because of this, don’t settle for the refund. It would probably be a good idea to talk to an attorney about what options you have available to you to rectify this.

With this coming on the tail of the fake bank accounts and credit cards that were being created by Wells Fargo employees, it makes it a little bit harder to believe that this forced place car insurance was just an “error”.


My College Student and my Car Insurance Policy

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/30/2017

Q: Why won’t my car insurance company let me take my college student off my policy?

A: Your car insurance company is out to protect themselves, always remember that. And a college age student that still drives your vehicle when they come home every now and then is a way for them to deem them a risk and increase your insurance premium.

Does it make sense? No, it doesn’t and here’s why.

A college student is away from home living under a different roof and usually doesn’t have access to the vehicles back at home. They are also an adult. Any other adult or family member that meets this description would never have to be added to your policy. But because they are a college student that used to live in your household and there is the remotest possibility of them driving your vehicles again, the insurance company is going to make sure they get a higher premium from you.

Can you do anything about this? Yes, you can.

First, tell the insurance company that you no longer claim your college student on your taxes (if this is true and it usually is) and that they do not have one of your vehicles with them at school. If the insurance company requires proof they no longer live with you, then give them the new address.

If they still do not let you remove your college student that is an adult and no longer living in your household, it may be time to find another insurance company.

Unlisted Driver on Car Policy

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/30/2017

Q: What happens when a driver not on your  car policy gets into an accident with your car?

A: Well first, your car insurance company is going to want to know if they are a regular driver or a temporary driver. So be prepared for a lot of questions. If it was just someone borrowing your vehicle and was a one-time occurrence, nothing more will be said and they will usually drop the issue.

However, if this person regularly uses or borrows your vehicle they will require that you add them to your policy. If you refuse, they will either add the person without our permission or they will cancel your policy.

If the driver is your child, they will also require you to add them to your policy even if they don’t drive very often. This can include children that don’t normally live with you if the insurance company deems them high enough of a risk or consistent enough of a driver that they want them on the policy.

Any other family members or friends that live in the household will be required to be added to your policy or excluded from your policy, regardless if they have their own vehicle they normally drive or not. Now that they have been in an accident and your insurance company knows about them, they are considered a risk.


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