For most of us, in fact 99.99% of us, we assume that is we buy an auto insurance policy for coverage of $100k/$300k, then we will have coverage of $100k/$300k if something happens. For 99.99% of us, we would be completely wrong. What most everyone does not realize is that there are many hidden provisions in your auto insurance policy that unilaterally work in the insurance company’s favor and are NEVER disclosed to you BEFORE you buy the policy. I will discuss a few of them below. But first, a quick question, in the 7 ½ minutes or the 15 minutes or less you took to purchase auto insurance, how many companies offered you a chance to look at the policy first? Or explain the policy to you? Likely none.
So, let’s get started on the HIDDEN policy provisions your insurance company NEVER told you about:
- Step Down Provisions
What is this? Simply put, this a provision in your policy that reduces the limits available for covering you if certain conditions are met. The best example is excerpted below:Continue Reading