Car insurance is an important part of driving and provides a certain amount of protection. However, most policies don’t provide “full coverage” of every single damage caused during an accident. It’s important to understand what your policy will cover and what it won’t cover. Here’s a breakdown of some of the things that may not be covered by your insurance plan.
Five Things Your Insurance May Not Cover
Lost or Stolen Vehicle
Depending on the company and the coverage you choose, you may not be covered if your car is lost or stolen. Most insurance companies will cover the actual value of the vehicle, if you carry comprehensive and collision coverage. However, even with this coverage, your claim may go unpaid if you don’t handle this situation properly. For example, if you don’t report the theft immediately to the police or you left the keys in the vehicle, your claim may go unpaid.
Using your Vehicle for Business
Unless you choose optional coverage called “business use” coverage, you won’t be covered while using your car for business. This could be as simple as running to pick up lunch for the office or taking a day trip for a conference. If you get into an accident during this type of commute, your insurance may not cover you. However, when you get insurance from a company such as 21st Century insurance and you choose the “business use” coverage, you’ll be covered.
Other Drivers and Other Vehicles
Depending on the state you live in and the coverage you choose, you may not be covered if you drive a friend’s vehicle. In addition, your policy may not cover someone else driving your vehicle. You need to make sure you understand this part of your policy before you ask someone else to drive your vehicle or you drive a friend’s vehicle. This could have disastrous results, if an accident occurs and you or your friend are not covered.
Upgrades and Custom Parts
An optional coverage offered by most insurance companies will cover any after-market parts, but regular insurance coverage won’t cover these parts. If you have custom rims put on your vehicle and you get into an accident damaging one of them, you may not be able to get it fixed without paying for it yourself. Make sure any aftermarket parts are added to your insurance policy, unless you plan to handle the repairs out of your own pocket.
Items Not Attached to Your Vehicle
If something is stolen out of your vehicle, such as a purse or wallet, it won’t be covered, in most cases. The damages caused by the thief, such as a broken window may be covered, but the items stolen won’t be, if they were not originally attached to the vehicle.
Accidents causing under the hood damage will usually be covered by a good auto insurance policy, but the five things above, along with others, may not be covered. Make sure you understand what your insurance will and will not cover before you commit to a new policy.