I had previously done a blog entry entitled auto insurance 101 in which I discussed the basic considerations in selecting the right auto insurance policy for you and your family.  Some recent client experiences show me that the average consumer needs even more information when considering auto insurance options.

When purchasing auto insurance, your agent will ask you if you have health insurance and, if so, would you like for your health insurance company to be the primary payer of auto accident related bills.  Always answer this question with a firm "No."  Why?

If you select your health insurance as primary and your auto insurance as secondary payer of auto accident related medical bills, then your  health insurance carrier may be able to assert a lien - a right to be paid back the amount paid on your behalf - on any money it paid for your accident related treatment.  Conversely, an auto insurance company has no right to assert a lien for any money paid on your behalf for accident related medical bills.

If you do elect your health insurance as primary and then lose that coverage and don't inform your auto insurance company, then you will incur a $750.00 penalty by your auto insurance company and that amount will be added to your deductible.

When purchasing insurance and considering your coverage options, make certain that the coverage choices you indicated to your agent are the coverages that are actually shown in the Coverage Selection Form.  One recent client was surprised to discover that the Coverage Selection Form she signed indicated she had chosen her health insurance as primary in spite of the fact that she never had health insurance.

As with any contract, it always pays to read every word before you sign the document.