By now you should probably know about the many benefits of having auto insurance. By doing so you are protecting your health and financial well-being. What we don’t often hear about are the many horrible situations people have to experience for various reasons; sometimes their fault, and sometimes the fault of the insurance companies. However, we are required by law to carry car insurance at all time while driving.
All we can do is ensure that we don’t get ourselves into the same situation, and that we learn from other people’s mistakes. So without further ado, I present to you auto insurance horror stories:
Kathy, 20, from Richmond, Virginia shared her story with us, of how she had been sideswiped on her way back from work one evening.
“I’m still not completely sure what happened, I remember getting hit, and next thing I know I’m up against a light post on the side of the road. It turns out, the guy that hit me didn’t have any auto insurance. I had wrenched my neck pretty bad, and was in a lot of pain, so I went over to the hospital to get it checked out.
I called my insurance company the next morning to report my claim, and was hoping to get reimbursed for my medical bill. Apparently, since the other guy didn’t have insurance, and my plan didn’t have under-insured motorist bodily injury coverage, I was out of luck, and ended up having to be for me $800 medical bill out of pocket.”
What We Can Learn From Kathy’s Story:
Always make sure you have appropriate forms of coverage, in this case, under-insured motorist bodily injury coverage (UNDUM).
Don’t cut out particular forms of coverage just to save a few bucks. If we knew when accidents were coming we wouldn’t need insurance at all, unfortunately this is far from reality.
The next horror story was sent to us from Simon of Boulder, CO.
“I had just switched my auto insurance to a new company, with better coverage, since I had just got a promotion, and wanted to make sure I had all forms of coverage. Everything went smoothly, I was already feeling safer with my finances. 6 months pass, and I get 2 bills in the mail; one from my new insurance company, and one for my old company. It seems so obvious now, but at the time I had no idea you actually had to cancel your previous policy. Long story short, I ended up paying an additional $500 to my old insurer in addition to the cost of my new policy.”
What We Can Learn From Simon’s Story
* You always have to cancel your old policy, once you’ve switched companies. Otherwise you may be paying for coverage you won’t even be using.