As you probably already knew or maybe have experienced, there are many surprising things about auto insurance. Auto insurance is usually not on your list of things you want to pay for, however the security that insurance provides and the peace-of-mind is more than worth it for all of us. Being knowledgeable about insurance is just as valuable as the coverage itself. Here are 3 surprising auto insurance facts that you might not know about.
Auto insurance is required in all 50 states. Even though minimum limits vary from state to state, it is illegal to drive without insurance no matter where you are in the United States. In some states just being under-insured can result in a ticket, fines, or worse.
No one deserves to have to pay for the damages of a wreck that is not their fault. For this reason, every state requires that motorists must possess car insurance and are responsible for the costs to repair damages of the wrecks that they cause.
Auto insurance is tax deductible for business use. You can determine the amount of time you use your car for solely business purposes and calculate an equivalent percentage of money from your insurance bill and deduct that amount of money from your yearly gross revenue on your tax return. For example, 30% of the time that you spend in your car is strictly business related, then 30% of your auto insurance may be deductible.
We do not pretend to be CPAs and urge all readers to communicate with your accountants and CPAs.
Auto insurance generally does not cover theft of personal belongings from the vehicle. Your home insurance policy typically only covers a percentage of your contents or personal belongings away from your home, and even then- you are still subject to your home insurance deductible. Always keep your belongings out of eyesight & your vehicle locked to discourage theft.
Auto Insurance can throw a few curve balls and it is imperative that you are well informed as to what your needs are and what your actual coverage is. Make sure you have an insurance agent that you can trust & discuss your policy with. Understand that independent insurance agents have access to multiple reputable companies & can find a policy to suit your individual coverage needs.
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