Auto insurance is something that most drivers in the United States have. It’s required in most states, and for good reason – it helps protect us financially if we are involved in an accident. However, many people don’t realize that their auto insurance policy doesn’t cover everything. In this blog post, we will discuss five things that your policy may not cover. Read on to learn more.
1. Damage caused by a natural disaster
Many people are surprised to learn that damage caused by a natural disaster is not typically covered by standard car insurance policies. That’s because insurers consider these events to be “acts of God” that are beyond our control. As a result, they often exclude them from coverage or charge much higher premiums for policies that do provide protection against these risks.
Some common natural disasters that are not covered by standard car insurance policies include earthquakes, floods, and wildfires. If you live in an area that is prone to these risks, it’s important to check with your insurer and read Progressive auto insurance reviews to see if they offer any special coverage options. Otherwise, you may be left high and dry if your car is damaged in a natural disaster.
2. Mechanical failure or damage
There are a few things that are not typically covered by car insurance. One of these is mechanical failure or damage. This can include problems such as a blown engine or transmission, overheating, or excessive wear and tear. Of course, if the damage is caused by an accident that is covered by your insurance, then it will likely be covered as well.
3. Animal collision
Another thing that is not typically covered by car insurance is damage caused by animals. If you hit a deer with your car, for example, your insurance will not cover the repairs. In some cases, however, you may be able to purchase an additional rider to cover these types of damages. Finally, most car insurance policies will not cover intentional damage or vandalism. So if you hit a pole on purpose, don’t expect your insurance to foot the bill.
4. Theft or vandalism that occurs away from your home
Even if you have comprehensive car insurance, there are still some things that may not be covered. For example, if your car is stolen or vandalized while you’re away from home, you may not be covered. Most policies exclude coverage for theft or vandalism that occurs away from your home, so be sure to read your policy carefully.
If you’re planning to travel with your car, you may want to purchase a separate policy that covers theft or vandalism. Alternatively, you can add comprehensive coverage to your existing policy for an additional premium. Either way, it’s important to be aware of the coverage limitations of your policy so that you can plan accordingly.
You can add comprehensive coverage to your existing policy for an additional premium, which can be pricey. In California, “a comprehensive policy with a $1000 deductible costs $1609, 186% more than the basic liability-only coverage” according to Ross Martin from The Zebra. Either way, it’s important to be aware of the coverage limitations of your policy so that you can plan accordingly.
5. Injury or death to someone who is not a member of your household
While car insurance covers many things, there are some things that it does not cover. For example, most policies will not cover injury or death to someone who is not a member of your household. This means that if you hit a pedestrian with your car, your insurance is unlikely to cover their medical expenses or any damages that they may sue you for. Additionally, most policies will not cover damage to your car that was caused by an uninsured driver. As a result, it’s important to be aware of the limitations of your car insurance policy before you get behind the wheel.
Bonus: Use of your car for commercial purposes
One thing that is not covered by most car insurance policies is the use of your car for commercial purposes. This includes using your car to transport goods or passengers for hire, or using it to promote a business. If you plan to use your car for any of these purposes, you will need to purchase a separate commercial auto insurance policy.
This policy will provide coverage for any damages that occur while your car is being used for business purposes. It is important to note that many personal auto insurance policies will exclude coverage for damages that occur while your car is being used for commercial purposes, so it is important to be aware of this before you get behind the wheel.
As you can see, there are a few things that your car insurance policy may not cover. It’s important to be aware of these exclusions so that you can plan accordingly. If you’re ever in doubt, be sure to check with your insurer to find out what is and isn’t covered by your policy.
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