Your military status means you have unique access to discount military auto insurance. Make it your business know what your military auto insurance covers - and what it doesn't.
Before they were famous, many truly influential men and women started by serving their country in the US military or grew up in military families.

Auto Insurance Myth vs. Reality

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You don't want to just be a little insured for your car. And you don't want to find out, too late, that your auto insurance coverage was all - or nothing.

Your military status means you have unique access to discount military auto insurance. Make it your business know what your military auto insurance covers - and what it doesn't.

WILL AUTO INSURANCE COVER MY RENTAL CARS?

Maybe; maybe not. Most auto insurance policies, even the credit card you use to pay for the rental, offer some insurance protection against theft and damage to a rental car. But the loss-of-use fee usually isn't covered unless you add it on.

A loss-of-use fee covers lost income to the rental car company, should the car you rented be out of service while being fixed for damage you caused. That can add up to hundreds of dollars if the rental car is out of service for a long time - even a week of lost-use can add up fast. Check your auto insurance and your credit card policy before you rent a car to see if the loss-of-use fee is covered; otherwise, you might want to add it to your rental car fees.

"Red car, sports car, shiny black sedan...will these auto choices make my auto insurance higher?"

Color of the car doesn't target you for higher-rate auto insurance. The lowest rates on auto insurance are determined by variables like year and model of your car; your driving record; your credit history; and where you live. If you already have insurance and find yourself driving less than you assumed - for instance, if you drive less than 40 miles a day - you may qualify for an additional discount on your current auto insurance policy.

The main reason to have auto insurance include liability, accident, and car theft. Of the approximately 1 million vehicles are stolen nationwide every year, the National Insurance Crime Bureau reports that the 1994 Honda Accord is the most stolen car with 55,000 Accords stolen in the US in 2009. The Honda Civic is the second most stolen car, with 48,000 stolen. As far as we know, auto insurance is not higher on Hondas.

DO I NEED GAP INSURANCE?

There are exceptions in auto insurance policies that can leave you exposed - without insurance - in critical situations.unless you're careful to close all the potential gaps.

Here is one gap to avoid: what if you are in an auto accident soon after taking your brand new car off the lot? You have full auto insurance, so you think you're covered... but maybe not.

As you drive your new car off the lot, the value of your vehicle plummets as much as 20%-30%. If you paid $25,000 for your new car and have an accident just one month later, you have probably made just one car payment. Assuming you did not put any money down, your total auto loan amount is still hovering around the $25,000 purchase price.

Even with full auto insurance coverage, you will only receive the market value of your vehicle which could be as much as 20%-30% lower than the purchase price. On a $25,000 car, 20% depreciation would be $5,000 - and that would be the financial gap you would have to fill straight from out of your pocket, unless you had GAP insurance.

GAP stands for Guaranteed Auto Protection and we recommend you don't leave home without it. Simply put, GAP insurance is necessary in almost all cases; the good news is that it is relatively low cost.



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