If you’re like most people, you don’t read your entire auto insurance policy. You probably just skim through it, looking for the basics like coverage amounts and what’s not covered. Unfortunately, this can lead to some surprises down the road when you try to make a claim.
When it comes to auto insurance, there is no one-size-fits-all policy. Instead, it is important to research different policies and find the one that best meets your needs.
For instance, some policies may cover damage to your car caused by an accident, while others may only cover damage caused by theft or vandalism. It is also important to look at reviews, like a State Farm auto insurance review, to research different policies before you make a purchase. This way, you can be sure that you are getting the coverage you need at a price you can afford. By taking the time to research your options, you can be sure that you are getting the best possible auto insurance policy for your needs.
Take a look at these surprising things that your auto insurance policy probably doesn’t cover:
One of the most common surprises is that auto insurance generally does not cover mechanical failures. So, if your engine blows up or your transmission goes out, you will likely be on the hook for the repairs. The same goes for tires – if you get a flat tire, you will need to pay to replace it yourself.
This can come as a shock, especially if you’ve been in an accident and your car needs expensive repairs. However, it’s important to understand that mechanical failures are considered “wear and tear” on your vehicle, and most insurance policies will not cover them.
There are a few exceptions, such as if your car is still under warranty or if the failure was caused by something other than normal use, but in general, you will be responsible for paying for any repairs out of pocket. If you’re worried about expensive repairs, you may want to consider getting an extended warranty for your vehicle. This will cover most mechanical failures and can give you peace of mind on the road.
Damage from Natural Disasters
Another surprising exclusion from most auto insurance policies is damage caused by weather. So, if you get into an accident during a snowstorm or your car is damaged by hail, your insurance company may not cover the repairs.
Most people are aware that their auto insurance policy will not cover them for damages caused by flooding or severe weather conditions. However, what many people don’t realize is that damage caused by more mundane weather conditions is also typically excluded from coverage. For example, if your car is damaged by hail, high winds, or even heavy rain, you will likely be on your own in terms of paying for repairs.
As a result, it’s important to be aware of the potential risks posed by weather conditions in your area and to take steps to protect your vehicle accordingly. Additionally, it’s a good idea to keep a close eye on the forecast and to avoid driving in potentially hazardous weather conditions if at all possible. By taking these precautions, you can help to minimize the risk of weather-related damage to your car.
Another thing to be aware of is that some auto insurance policies exclude rental cars. So, if you’re planning to rent a car while on vacation, be sure to check your policy first. Otherwise, you may be stuck with the bill if something happens to the rental car.
When renting a car, it’s important to be aware of your auto insurance policy and what it covers. Some personal auto insurance policies exclude rental cars, which means you would be responsible for any damages to the vehicle. Luckily, most rental car companies offer insurance packages that can cover you in case of an accident.
It’s important to read the fine print of your auto insurance policy and the rental car company’s insurance offerings to make sure you’re fully covered in case of an accident. And in general, it’s always a good idea to err on the side of caution by getting additional insurance when renting a car. Better safe than sorry!
Expensive Towing Services
Finally, many auto insurance policies have a limit on how much they will pay for towing. So, if you’re planning on taking a long road trip, be sure to find out what your policy’s towing limit is. Otherwise, you may be stuck with a hefty bill if your car needs to be towed.
When your car breaks down, the last thing you want to worry about is how much it will cost to get it towed. Unfortunately, many auto insurance policies have a limit on how much they will pay for towing. That’s why it’s important to know the details of your policy before you need to use it. Most tow truck companies charge a flat fee for their services, so you’ll want to make sure that your insurance will cover the entire cost. Otherwise, you may be stuck with a bill that you can’t afford.
If you’re not sure whether your insurance will cover the cost of a tow, call your agent and ask. They’ll be able to give you the specific details of your policy so that you can be prepared in case of an emergency.
If you loan your car to a friend or family member and they get in an accident, your auto insurance will not cover the damages. This is because most insurance policies exclude coverage for accidents that occur when someone else is behind the wheel.
For example, if your child is licensed and lives with you, they would typically be covered by your insurance. The same is true for a spouse. In general, though, it’s best to assume that anyone else who drives your car isn’t covered by your insurance policy. So if you do let someone borrow your car, make sure they have their own insurance in case of an accident.
Even if you’re the safest driver on the road, accidents happen. And when they do, you want to be sure that you and your car are covered.
It is also common that if you’re driving for your job or for commercial reasons, such as uber driving or DoorDashing, accidents done on the clock are not covered. Instead, you must be covered under a commercial auto insurance policy. Before picking up what seems to be an easy side hustle, make sure you’re covered in case the worst case scenario happens.
However, many people are unaware that their auto insurance policy may not cover everything they think it does. For instance, most policies will not cover personal belongings that are stolen from your car or damage caused by an act of nature, such as a hurricane or tornado. In addition, you may be responsible for paying a deductible before your insurance company will cover any damage to your car. As a result, it’s important to read your policy carefully and talk to your agent about what is and is not covered. That way, you can be prepared for anything that comes your way.
Personal Injury Protection
Most auto insurance plans do not cover personal injury protection, or PIP. PIP is a type of coverage that helps to pay for medical expenses and lost wages if you are injured in a car accident, regardless of who is at fault. While PIP is not required in all states, it can be a helpful form of protection to have if you are involved in an accident. Learn about the different types of car insurance coverage (this is your no follow link) and how they protect you financially after an accident.
If your state does not require PIP coverage, you may still want to consider adding it to your auto insurance policy. PIP can help to fill in the gaps if your health insurance does not cover all of your medical expenses following an accident. For example, many health insurance plans have deductibles that must be met before coverage kicks in. PIP can help to cover those deductibles, as well as any co-pays or out-of-pocket expenses.
In addition, PIP can provide replacement services if you are unable to work due to your injuries. While PIP coverage can be expensive, it may be worth the cost if you are concerned about being unable to finance your medical care or lost wages following an accident.
If you’re unsure about what your auto insurance policy covers, the best thing to do is give your agent a call. They will be able to answer any questions you have and help you get the coverage you need.
If you’re interested in learning more, you can read 10 Things That Are Not Covered By Auto Insurance from smartfinancial.com
Author’s Bio: Madison Cates is a freelance content writer and educator. She enjoys traveling, playing music, and singing, especially when she gets to do it with her husband. When she’s not spending her time writing blogs, you can find her playing marco polo at the pool with her boys. You can find her on instagram as @madisonncates where she documents her life as she balances freelancing with being a mom of two baby boys.
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