Insurance Myths

My trailer (utility trailer, camper, etc.) is covered by my auto insurance.   

  • This is only true for Liability.  The liability, or damage caused to someone else, is covered by the Liability and Property Damage of the Auto Policy of the vehicle pulling the trailer.  Coverage for damage to the trailer would require a policy on the trailer.   

My ATV, motorcycle, boat or snowmobile are covered by my homeowner’s insurance because they are in my garage.   

  • This is false.  Your Homeowners will cover anything used solely for the maintenance of your property and maybe a canoe or kayak, but coverage for an ATV, motorcycle, boat or snowmobile would require its own policy.  The same goes for an Antique or Classic car.    

If someone else drives my vehicle and has an accident then their insurance will pay for the damages.   

  • The insurance follows the vehicle.  Although there may be instances when the driver’s insurance would provide excess coverage, the primary insurance would be from the vehicle.   

Homeowner’s Insurance covers lost jewelry that is not scheduled on the policy, regardless of the cost of the item.   

  • This is false.  Most Homeowners policies require that items with a value over $2,500 be listed or scheduled on the policy to be covered for theft or mysterious disappearance.  Some carriers even provide coverage if a stone would be lost from a setting, so long as the jewelry is scheduled on the policy.        

I have full coverage on my car, so I automatically have rental car coverage and towing.   

  • Unfortunately, the term “full coverage” is too often used and not explained.  In insurance full coverage means having both Comprehensive (glass, fire, theft, vandalism, animals) and Collision (damage to your vehicle as a result of colliding with something).  This is what a Leinholder requires.  Coverages such as Road Side Assistance and Rental reimbursement are separate options.   

I have Rental on my auto policy so it covers for mechanical breakdown.   

  • This is false.  Rental reimbursement provides a daily coverage amount, up to 30 days, in the event your vehicle is not drivable due to a covered claim.