This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

You Might Have Less Car Insurance Than You Think!





Insurance is supposed to serve as a safety net, but sometimes that net has some unexpected holes.

Even if you have full car insurance coverage, you could have less protection than you think because of exclusions and limits lurking in your policy's fine print. Car insurance policies can vary considerably when it comes to who's covered and when.

"Insurance is not a commodity," says Bill Wilson, associate vice president of education and research for the Independent Insurance Agents & Brokers of America. "Buying an auto policy is not the same as buying a two-pound bag of sugar."

Instead, he says, it's more like buying a bicycle. You have to evaluate features, the company's reputation and reliability and match the product for how you plan to use it.

That's why it's not only important to compare car insurance quotes, but also to compare policy details before purchasing.

"You should always ask for a full copy of your policy and read through the whole thing," says Penny Gusner, consumer analyst for Carinsurance.com. "It's better to know what coverage you have than to find out you don't have the coverage you need after something bad has happened."

Here are six examples of how coverage might be less than you expected.

1. Lower liability coverage for some drivers

In some states insurance companies can include "step-down provisions" for auto liability coverage, which lower the policy's liability limits to state minimum insurance requirements when you let a driver who's not on the policy use your car.

Say, for instance, you have liability limits of 100/300/50 ($100,000 for bodily injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident). You loan your car to a neighbor, who gets in an accident. Under a step-down provision, your liability limits for that accident would automatically drop to your state's minimum required liability limits. Those limits vary by state, but are far lower than 100/300/50.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs