Here are some of the things not covered by your policy along with some helpful tips.
If you use your car for business purposes, you can’t claim financial protection even if it’s a covered event. Bear in mind that deliveries and transporting people for hire (e.g. Uber) aren’t included in your standard auto policy.
If you’re planning on using your car for business, you may need commercial auto insurance. If you use it for work, ask your employer whether the company's policy covers you. If not or if you’re self-employed, ask your agent about commercial auto insurance coverage.
Although lenders require you to have collision and comprehensive coverage, the entire amount of your car loan may not be covered. That’s because insurers generally issue a check for the market value of your vehicle minus your deductible. Thus, the claims payout may be lower than the remaining balance of your car loan. This is most likely the case if you’ve only made a small down payment, or you’re just one to three years into your car loan.
Consider getting gap insurance that pays off the difference between your insurance claim and the outstanding balance of your loan.
Custom Parts & Equipment
When your car gets stolen or damaged, your car insurance will not cover the custom parts and equipment you installed. This includes:
- Aesthetic enhancements (e.g. custom rims, paints, and spoilers)
- Customized seats and interiors
- Performance enhancements
- Technology (e.g. TVs and stereo)
- Wheelchair lifts & other modifications
Get these custom installations insured so you’ll get coverage for unfortunate events.
While your car insurance policy will cover your stolen or vandalized car, it doesn’t cover the things you left inside it. It would only cover the vehicle itself (for the repair or replacement costs). But it won’t reimburse you for the costs of the stolen or damaged contents inside it.
The best way to prevent theft will always be ensuring that you lock your car and putting your belongings out of sight.
How do you insure your belongings? Well, your homeowners or renters insurance may help you with that! These policies may cover anything stolen from your car, provided that you submit a police report. If the item costs less than your deductible, you’ll have to pay the full replacement costs yourself.
In general, a regular car insurance policy will cover you and those who are listed under it – especially the members of your household. If you let unlisted drivers use your car, bear in mind that your car insurance doesn't protect them.
Ask your agent who is covered when driving your vehicle. More often than not, all household members with licenses, including your roommates, should be listed on your policy.
When you’re shopping for car insurance, you should understand what you’re buying. Here at The Cooksey Insurance Agency, we will help you get covered in a personalized way. You may call us at (757) 819-6896 or visit us at our office today to get a free quote and free consultation.