Common misconceptions and unfamiliar terms in car insurance documents confuse many car owners. Well, the reality is that they supposed to do that.

Here are 5 things a car insurance company will never tell you:

#1 Medical Payments May Not Pay Your Medical Bills

Medical payments usually come in $1,000, $5,000, or $10,000 increases and more if you want and prove to be very beneficial. Usually, hospitals and doctors do not charge your health insurance in case of accidents as the system helps you shield against the out-of-pocket costs that also includes copays and deductibles.

However, your insurance firm may not tell you that medical payments do not necessarily pay your Med bills because medical payment adjusters commonly reduce medical bills. For instance, your medical bill was $4,500, but the insurance company determines that your vehicle was worth only $2700. Now, it will pay that amount and leave the balance to you. Now, you didn’t negotiate the price of medical care or desired the smashup, but you are powerless against the necessary and reasonable amount terms of the insurance company.

#2 You May Not Need Any Rental Car Insurance

If you have a rental car, check its policy and you might end up surprised by your car policy providing appropriate coverages. Furthermore, some credit cards also offer rental car insurance if you use them for paying for the vehicle.

So, make sure to read the contracts from the current car insurance and credit card(s).

#3 Insurance Firms Can Raise Your Rates Even if You Are Innocent

Sure many states stop insurance firms from charging innocent drivers who are forced to use uninsured motorist treatment or med pay. However, it is not the case in every estate; many firms apply penalties against innocent drivers who were not at fault.

So, yes, your insurance company can increase the rates even if someone hit you while you were parked.

#4You Can Get a Refund If You Move or Change The Insurance

Many of us cancel the insurance policy when moving to another estate, which might be a mistake. If you pay the car premiums in a lump-sum payment, you must know that it covers several months. So, in case you move to another state, the insurance firm will have to refund for the unused months.

However, some firms may apply early termination fee or call for a 30-days notice. So, always make sure to check the documents before cancellation.

#5Collision Coverage May Not Include Paying Off Your Car

A car will definitely need to get fixed after a collision. However, you must know that insurance companies only pay the evenhanded, fair market value of the car. So, whether you opt for your collision coverage or the other driver’s insurance pay, it may not be of much value.

And if you are having an “upside-down” situation in your loan, chances are you will end up owing money on a vehicle that’s been computed. GAP or guaranteed asset is so best if you have an upside-down loan.

However, not every insurance company is created equal. Mexican Insurance Store provides top-rated Mexican auto insurance that offers great coverage at surprisingly affordable rates.

You can use the online platform to get a quick quote saving your time, efforts, and money.

Author's Bio: 

Mexican Insurance Store