cockpit-220116_1280A Beaumont Texas Auto Insurance Update With all the advertising done by auto insurers, it may be hard to understand how auto insurance works.  There are many myths and half-truths on the internet that if not corrected, can end up costing you thousands of dollars.  We offer competitive Beaumont auto insurance rates and great customer service.  If you call us, we will be happy to provide you with the best possible combination, of price, coverage, and service. Common Auto Insurance Myths
  • “I can use my car for business.” This is a myth. If you use your car for business, you will need to notify your insurer.
  • “My insurer will pay off my auto loan if my car is totaled.” Your insurer will only pay a fair market value for your totaled car.
  • “It is best to carry only state-minimum liability insurance.” Buying just the minimum limits means you will pay more out-of-pocket costs if you have an accident, which can run very high.
  • “Any new car I buy is covered.” If you buy a new car, you must inform your insurance company immediately (policy states the number of days), so that they can transfer your existing policy to cover the new car.
  • “Red cars are more expensive to insure.” The color of your vehicle has no impact on your auto insurance premium.
  • “Online insurance is easy.” This is a myth.  With online programs, you—not a professional—are the one who needs to figure out how much coverage you may or may not need.  It also takes more than “10 minutes” to apply, and many times ends up costing you more.
  • “Not reporting an accident is ok.” If you get into an accident with another driver, that driver may file a claim for damages or injuries.  If they do, it will only be a short time until the injured party’s insurance company files a claim against you and your insurance company.  All states have mandatory Department of Motor Vehicles reporting for accidents when damages are over a certain amount.
  • “I can be an Uber driver without changing my insurance.” Not true.  If you decide to use your personal vehicle for this purpose, you will need to buy commercial insurance.
  • “I can schedule myself as the main driver on my child’s car.” This may be ok until you have a loss. The insurer may fight for additional premiums based on the true main driver.
  • “My insurance will follow me when using someone else’s car.” Insurance usually follows the car, so if you borrow or use someone’s car, his or her insurance will apply first.
At J.S. Edwards & Sherlock Insurance Agency, we understand how important commercial auto insurance coverage is for any company that utilizes vehicles to take care of business responsibilities. The right insurance policy could potentially save your company thousands of dollars in the event of driver error that leads to an accident or injury. That is why we strive to make commercial auto insurance affordable and accessible for businesses of all types and sizes.