When you own a vehicle or purchase a new vehicle, the first thing to do is to apply for car insurance. Understanding your car insurance policy as to what it covers and what it does not is very essential because the truth is that not many consumers know exactly what car insurance does not cover. Here are a few things what car insurance doesn’t cover and that you need to know when you purchase a new vehicle or file a claim:
- When your car is damaged by collision: When a car is damaged due to collision, which can be collision with another car or collision while hitting a stationary object, the car insurance will provide the coverage only when it has the collision coverage included in it. Otherwise, you are not liable to be paid for the damages. For this, you need to check whether your auto insurance paper has collision coverage included in it or not. If the collision is due to the other driver’s fault, then it is his car insurance that should cover your vehicle’s repair.
- When you car is damaged by an animal or any natural calamity: Your car can also be damaged when it hits an animal or vice versa or due to some unforeseen natural calamities like as flood or earthquake. Such situations may not be included.
- When your car is damaged when you are on business: It is to be noted that your car insurance covers the repairs that occur when you use your car for regular commuting. But if you use your car for other duties like as business tour, this is not included in the coverage. Sounds strange, isn’t it? Actually, for this you need to have “business use” coverage.
- Your medical bills: You should also see that your auto insurance policy covers medical coverage also. If you don’t have medical coverage on your car insurance, then you are not liable to get compensation for the medical bills for you or anyone else in your vehicle during an accident.
- Your car when someone else is driving: If you are renting your car to someone else, that person or even your car might not be covered.
- Things stolen out of your car: Always remember, you are not liable to get any insurance coverage for stolen things (cell phones, CDs, laptops, portable GPS etc.).
- Car accessories installed after purchase: Usually a car insurance policy covers items that are permanently fixed on to the car. But if you install any new accessories like new cool designer wheels or sophisticated music system or a new paint job, such things are not covered in the car insurance.
- Last but not the least, here are few other things what car insurance doesn’t cover: loss or damage of the car due to the following:
- Gradual destroy of car and its parts
- When driven by person without valid driving license
- Damage due to oil leakage
- Damage due to not following car manufacturer’s guidelines
The conclusion is that as a car owner, be sure to read your car insurance policy carefully to understand exactly what you are getting for the money that you are depositing.